- NZD/USD traders keep the 0.7000-0.7050 range in play.
- The US dollar bullish momentum is slowing down as investors are taking profits out of the table.
The NZD/USD is trading at around 0.7027 up 0.13% as the pair is mainly led by sentiment toward the US dollar.
The kiwi found intraday support just below the 0.7000 handle and is now hovering in the 0.7025 region which is a key support/resistance level used in the last four days of trading.
The US Dollar Index (DXY), which measures the greenback relative to a basket of currencies is seeing slowing its bullish momentum in the last three days of trading. The bull trend is strong and saw DXY jump from 89.23 to 92.97 in just 15 days. Investors are expecting the Federal Reserve to hike at least three times in 2018 as inflation and growth in the United States are on track.
This Monday is rich in Fed’s members' speeches, however, as they are rather academic in nature they are unlikely to stir the markets in any meaningful way. Additionally, since it is May Day in the United Kingdom there is less volume to move the markets.
Looking back, last Friday the Non-Farm Payroll came below expectations at 164K against 192K forecast by analysts while wage’s growth (average hourly earnings) also disappointed at 2.6% YoY against 2.7% forecast while the unemployment rate fell to 3.9% which is the lowest level since December 2000. Analysts argue, that despite the lowest reading in the NFP, the market expectations for policy normalization in the US remain high with at least 3 rate hikes in 2018.
NZD/USD 4-hour chart
-636613056432695755.png)
The trend is bearish and bulls are trying to find a floor at the 0.7000 handle. Supports are therefore seen at the 0.7000 level and at 0.6500 previous swing low. Resistances are seen at 0.7500 top of the four-day range and at 0.7096 swing high.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.