NZD/USD: Outlook remains positive – UOB

Pablo Piovano FXStreet

The outlook for NZD/USD stays constructive but sustained gains above 0.7250 are not favoured, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that the ‘the rapid pull-back from the high has room to extend lower but any weakness is likely limited to a test of 0.7160’. NZD subsequently rose to a high of 0.7229 before dropping sharply to an overnight low of 0.7153. From here, the risk remains on the downside but the support at 0.7130 is unlikely to come under threat. Resistance is at 0.7200 followed by 0.7225.”

Next 1-3 weeks: “NZD rose to within 10 pips of the major resistance of 0.7250 last Thursday (high of 0.7241) before retreating quickly. The rapid pull-back amid lackluster upward momentum suggests that NZD is unlikely able to maintain a foothold above 0.7250. Overall, while the outlook for NZD is viewed as positive, the prospect for a sustained advance above 0.7250 is not high. On the downside, a break of 0.7100 would indicate that a short-term top is in place.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.