NZD/USD: No significant increase in momentum – UOB Group

FXStreet Insights Team FXStreet

New Zealand Dollar (NZD) could decline vs US Dollar (USD), but as there is no significant increase in momentum, it is unlikely to be able to break clearly below 0.5860. In the longer run, outlook is mixed; NZD is expected to trade in a 0.5835/0.6030 range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

NZD/USD is unlikely to be able to break clearly below 0.5860

24-HOUR VIEW: "After NZD soared on Tuesday, we highlighted yesterday, Wednesday, that NZD 'is likely to rise further.' However, we pointed out that 'conditions are deeply overbought, and NZD is unlikely to be able to break above 0.5965.' Although NZD subsequently rose to 0.5969, it dropped sharply from the high, closing at 0.5898 (-0.63%). This time around, NZD is likely to decline further, but as there is no significant increase in downward momentum, it is unlikely to be able to break clearly below 0.5860. The major support at 0.5835 is not expected to come into view. On the upside, resistance levels are at 0.5915 and 0.5940."

1-3 WEEKS VIEW: "Not much changed since our update yesterday (14 May, spot at 0.5935). As highlighted, 'the recent price movements have resulted in a mixed outlook.' For the time being, we expect NZD to trade in a 0.5835/0.6030 range."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.