- NZD/USD is currently struggling to push above the 0.6800 level, hampered by resistance in the form of the 21DMA.
- The pair found support during APac trade at a trendline going back to mid-December.
- A break below this support could open the door to a push lower towards 0.6700.
Though the pair does trade reasonably higher versus Asia Pacific session lows in the 0.6750s, NZD/USD is currently struggling to push above 0.6800, with the 21-day moving average acting as resistance for a second successive session. Amid a lack of domestic data or positive drivers, the kiwi has struggled to emulate the outperformance seen in its Aussie counterpart, which is deriving an independent boost from strong Australian labour market data. Indeed, chatter from New Zealand PM Jacinda Ardern about a potential toughening of domestic Covid-19 curbs in case of community transmission in the country, albeit not about a return to the fullscale lockdowns of old, may well be hampering the kiwi.
It was notable during the Asia Pacific session how NZD/USD found support at an uptrend that has been in play since the middle of December. The pair’s struggles to get back above 0.6800, however, suggest it is vulnerable to a broader pick up in the fortunes of the US dollar heading into next week’s Fed meeting. A push higher by the DXY on hawkish expectations, for example, could translate into a bearish breakout below 0.6750 and on towards a test of December lows just above 0.6700. For now, sub-par US weekly jobless claims data that saw initial claims leap to 280K from 230K the week prior, perhaps indicative of some Omicron-related labour market weakness, has been enough to keep the buck bulls at bay.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.