NZD/USD slight offer on business PMI, bulls holding well on 0.73 handle

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7320, down -0.02% on the day, having posted a daily high at 0.7324 and low at 0.7317.

NZD/USD has moved into a phase of consolidation and remains bid despite the recent Business PMI that came in at 56.2 vs prior 58.5.

The bird has been propped up on the back of a mixed dollar and commodities that are resurging while markets concentrate on a shift in sentiment with respect to Central Banks, particularly the Fed. Yellen's dovish testimony has set back rate hike expectations and that is fuelling a flight to the carry trade, supporting higher beta currencies such as the New Zealand dollar. The next big data for the dollar comes as:

US CPI expectations? - Nomura

Analysts at Westpac have noted that the bird is holding up well, against expectations and suggested that a 0.7200-0.7345 range is likely during the day ahead.

NZD/USD 1-3 month:

Their forward outlook suggests that the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end. US factors should outweigh local factors which are mostly supportive (25 May).

NZD/USD levels

Resistance: 0.7345 July 3 high; 0.7368 (today's high)/76 Feb. 7 high; 0.7393 Nov. 9 high. Support: 0.7300, 0.7280, 0.7220, 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.