NZD/USD pressured in Asia amid bullish DXY, Yuan weakness

Dhwani Mehta FXStreet

The NZD/USD pair attempts a tepid bounce, although remains under pressure in the Asian trades, as the spot faces double whammy amid holiday-thinned trading.

NZD/USD hovers around 10-DMA

Currently, the NZD/USD pair trades -0.15% lower at 0.7149, recovering slightly from session lows struck earlier at 0.7139. The NZD/USD pair keeps the red as the US dollar jumps to fresh eight-week peaks versus its major peers.

While the Kiwi also remains weighed down by ongoing weakness in the Yuan, after the Chinese central bank set PBOC fix weaker, with the Yuan hitting fresh six-year troughs post-China fix.

Looking ahead, amid a lack of relevant economic releases due on the cards today, the major will remain at the mercy of the USD dynamics, in wake of speeches from Fed officials Bullard and Dudley.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7179 (5-DMA), above which it could extend gains to 0.7210 (100-DMA) and from there to 0.7242 (50-DMA). To the downside immediate support might be located at 0.7100 (round figure) and from there to at 0.7080 (key support), below which 0.7036/32 (200-DMA/Oct 13 low) would be tested.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	High
1H	Bearish	Neutral	Low
4H	Bearish	Oversold	Expanding
1D	Strongly Bearish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Oct 24, 03:00 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.