NZD/USD slides back closer to session lows

Haresh Menghani FXStreet

• Weaker for the third straight session amid resurgent USD demand.
• Sliding US Treasury bond yields/US tax bill concerns help limit downside.
• Tuesday’s Chinese data dump to provide fresh impetus.

The NZD/USD pair stalled its Asian session recovery move near the 0.6935-40 region and refreshed session lows in the past hour.

The pair extended last week's retracement from over 2-week tops and traded with a mild negative bias for the third consecutive session on Monday, weighed down by a goodish pickup in the US Dollar demand.

However, a sharp slide in the US Treasury bond yields, led by reviving safe-haven demand, provided some support to higher-yielding currencies - like the Kiwi.

With the current focus on the US tax overhaul plan, failure to get the required support to pass the legislation might now contribute towards limiting deeper losses, at least for the time being.

In absence of any fresh fundamental drives, in terms of any major market moving economic releases, traders are likely to wait for Tuesday's Chinese data dump for some fresh impetus.

Technical levels to watch

Immediate support is pegged near the 0.6900 handle, which is closely followed by support at 0.6875 level. A convincing break below the mentioned support levels would turn the pair vulnerable to break below 0.6840 support and head towards testing the 0.6800 round figure mark.

On the upside, 0.6940-45 zone might act as an immediate hurdle, above which a fresh bout of short-covering could assist the pair to make an attempt towards reclaiming the key 0.70 psychological mark.

Author

Haresh Menghani

FXStreet

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

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.