- Kiwi supported by risk sentiment after Draghi’s comments and Trump’s tweet.
- Greenback drops versus commodity and EM currencies, holds to gains versus Euro.
- Data ahead: NZ Current Account and FOMC meeting.
NZD/USD extends the rebound from below 0.6500
Earlier today the pair bottomed at 0.6488 and again rebounded from near the 0.6485 area, setting a potential short-term double bottom. During the American session rose further, broke above 0.6513 (June 17 high) and recently printed a fresh daily high at 0.6536.
As of writing trades at 0.6530, up 25 pips from yesterday’s close, supported by the rally in equity prices. The DOW JONES is up 1.35% and the S&P 500 1.15%. European indexes ended with gains of 2% on average. The rally started after dovish comments from Mario Draghi and it was reinforced after Trump announced he talked with Xi Jinping and plans an extended meeting.
The improvement in risk sentiment moved US yields away from the lows, giving some support to the greenback that rebounded versus the yen and held to gains against the Euro. But the Dollar weakened versus the high yielding space, including the Kiwi and the Aussie.
Market participants are starting to focus on the FOMC statement. Today the Fed started its 2-day meeting. The decision will be announced tomorrow. No change is expected in rates but the statement and Powell’s words will be followed closely for clues about the possibility of a rate cut.
|Today last price||0.6524|
|Today Daily Change||0.0030|
|Today Daily Change %||0.46|
|Today daily open||0.6494|
|Previous Daily High||0.6515|
|Previous Daily Low||0.649|
|Previous Weekly High||0.6666|
|Previous Weekly Low||0.6487|
|Previous Monthly High||0.6684|
|Previous Monthly Low||0.6481|
|Daily Fibonacci 38.2%||0.65|
|Daily Fibonacci 61.8%||0.6506|
|Daily Pivot Point S1||0.6485|
|Daily Pivot Point S2||0.6476|
|Daily Pivot Point S3||0.646|
|Daily Pivot Point R1||0.6509|
|Daily Pivot Point R2||0.6524|
|Daily Pivot Point R3||0.6534|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.