NZD/USD struggles below 0.6600 mark, lowest since March 2016

Haresh Menghani FXStreet

• Dovish RBNZ-led selling pressure remains unabated.
• Resurgent USD demand adds to the bearish pressure.
• Traders now look to the US CPI print for fresh impetus.

The NZD/USD pair weakened farther below the 0.6600 handle and dropped to fresh 2-1/2 year lows in the last hour, albeit recovered few pips thereafter.

The New Zealand Dollar came under some intense selling pressure on Thursday in reaction to RBNZ's more accommodative policy stance, now forecasts the first hike in the third quarter of 2020 - a full year later than previously projected.

This coupled with resurgent US Dollar demand, supported by hawkish comments from Chicago Fed President Charles Evans, further contributed towards aggravating the bearish pressure surrounding the major.

Evans, a known dove, said that the US economy is performing very well and continued growth has cleared the way for one or two more interest rate hikes in 2018.

The USD upsurge extended through the Asian session on Friday, lifting the key US Dollar Index to over 13-month tops, and kept exerting downward pressure, dragging the pair to its lowest level since March 2016.

The selling bias now seems to have receded a bit, at least for the time being, as investors now look forward to the latest US consumer inflation figures for some fresh impetus on the last trading day of the week.

Technical levels to watch

A follow-through weakness below the 0.6570-65 horizontal zone is likely to get extended towards the key 0.6500 psychological mark before the pair eventually drops to 0.6445-40 support area. On the flip side, 0.6620 area (session high) now seems to act as an immediate hurdle and is followed by resistance near the 0.6655-60 region, above which the pair is likely to aim towards reclaiming the 0.6700 round figure 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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.