NZD/USD steadies above mid-0.65s ahead of ANZ's sentiment data

NZD/USD touches new weekly high of 0.6572 on Tuesday.
US Dollar Index stays in green below 97.
Coming up: ANZ's Business Confidence and Activity Outlook indexes.

Eren Sengezer FXStreet

After closing the previous day flat, the NZD/USD pair took advantage of the improved market sentiment on Tuesday and rose to its highest level since October 22 at 0.6572. With the markets quieting down in the US afternoon, the pair started to consolidate its daily gains and was last seen trading at 0.6560, where it was up 0.6% on a daily basis.

The upbeat tone surrounding risk-sensitive currencies helped the kiwi gather strength against its rivals on Monday. Reflecting the risk-on mood, Wall Street started the day higher and extended its march north in the first half of the NA session to allow the kiwi to preserve its momentum.

On the other hand, after, once again, failing to break above 97, the US Dollar Index retreated to 96.70 area and found support there and reversed its direction to cap the pair's upside. As of writing, the DXY was up 0.22% on the day at 96.90. The data published by the Conference Board earlier today showed that consumer sentiment continued to improve in the October in the U.S. "Consumer Confidence Index increased again in October, following a modest improvement in September. The Index now stands at 137.9, up from 135.3 in September," the CB announced.

In the early trading hours of the Asian session, the National Bank of New Zealand will publish its Business Confidence and Activity Outlook indexes.

Technical levels to consider

The initial resistance for the pair aligns at 0.6570 (daily high) ahead of 0.6610 (Oct. 21 high) and 0.6640 (100-DMA). On the downside, supports could be seen at 0.6520 (daily low), 0.6465 (Oct. 26 low) and 0.6420 (Oct. 8 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.