NZD/USD off lows, still weaker around mid-0.7200s

Haresh Menghani FXStreet

The NZD/USD pair traded with mild bearish bias through Asian session on Monday, albeit has managed to hold its neck above the 0.7200 handle.

On Friday, the pair failed to conquer 0.7335-40 supply zone and retreated over 75-pips from highs. Extending previous session's sharp pull-back from near one-month highs, the pair started the week on back-foot and was being weighed down by a goodish US Dollar recovery, amid easing geopolitical tensions in the Korean peninsula.

This coupled with a modest pickup in the US Treasury bond yields remained supportive of the greenback's recovery and was also seen denting demand for higher-yielding currencies - like the Kiwi.

Also collaborating to the pair's weaker sentiment was the downward revision of the inflation forecasts for 2017/18 by the New Zealand Institute of Economic Research (NZIER).

• New Zealand - NZIER lowers inflation forecasts

With an empty US economic docket, the pair remains at the mercy of US bond yield dynamics and broader market sentiment surrounding the greenback.

Technical levels to watch

Weakness below 0.7225 level could get extended towards 100-day SMA support near the 0.7200-0.7195 area, below which the pair is likely to challenge the very important 200-day SMA support near the 0.7135 region.

On the flip side, a sustained move back beyond 0.7260 level could lift the pair back above the 0.7300 handle but the key barrier would remain near 50-day SMA, around the 0.7335-40 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.