NZD/USD: the bird tracking the Aussie, dollar losing grip of its title, but...

NZD/USD has been testing the 100 SMA on a correction towards the 0.66 handle from the lows of 4th Sep down at 0.6529.
The dollar has been on the back foot and is losing sight of the 95.70 key level.

Ross J Burland FXStreet

NZD/USD has followed on the heels of the Aussie that managed a bid despite the weakening outlook in China (stocks lower) and the prospects the yuan heading to the psychological 7.00 level.

The Aussie was bid on the strong GDP data that forced a knee-jerk of short covering that was in fact sold into again and the Aussie fell all the way down to lows of 0.7144 as Asian bourses sold off., (Jakarta stock index closed down 3.7 pct, biggest one-day fall since Nov 2016). The bulls piled in there and we are where we are now as the greenback keeps sliding - AU-US government yield spreads were also tightening while equities and AUD/JPY rallied - the Kiwi simply followed suit.

Analysts take:

"After bumping up against support a few times yesterday, the kiwi pushed modestly higher overnight largely on the back of a weaker USD. We see kiwi lower in time, but do expect choppy price action against the USD as its story starts to look more fully priced," analysts at ANZ explained

Support 0.6540 Resistance 0.6640

NZD/USD levels

The price is overbought on the hourly time frame, however, the upside has plenty of room to go on the daily sticks where the price is barely above the lows for the 2.5 year period. There is a bullish tint on the technicals although the carry stays with the dollar and there is no reason to own the Kiwi. However, the ebbs and flows are paying off for those looking for profits in short covering. However, there is a strong level of support at this juncture and we will have to see some strong cross-currents to break this level of support.

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 hangs close to 1.3500, awaits fresh impetus from US CPI

GBP/USD keeps its range around 1.3500 in Wednesday's European trading. The pair continues to trade with caution as the US Dollar (USD) holds ground ahead of a crucial US consumer inflation report. Investors are watching this upcoming reading closely, as it is expected to play a major role in shaping the Federal Reserve’s next interest rate decision and the USD valuation.

EUR/USD consolidates below 1.1550 ahead of US CPI

EUR/USD struggles to gain any meaningful traction and holds steady around 1.1550 in the European trading hours on Wednesday, maintaining a familiar range held over the past week or so. Traders keenly await the release of the key US inflation data and further developments surrounding the Middle East crisis before placing fresh directional bets.

Gold retakes $4,400, eyes two-month high as traders look to US CPI for Fed hike cues

Gold attracts fresh buyers during the Asian session on Wednesday and climbs back above the $4,400 mark, closer to its highest level since June 5, which was touched the previous day. Traders now look to the US Consumer Price Index report for more cues about the US Federal Reserve's future policy path amid inflation risks stemming from volatile oil prices.

Zcash below $500 puts bulls under pressure, 100-day EMA in focus

Zcash price trades below $500 at press time on Wednesday, holding steady after two consecutive days of losses. Retail demand for the privacy coin is mixed as the broader market awaits the release of US Consumer Price Index data for July later in the day.

US CPI data set to show softer inflation in July as markets reassess Fed rate hike bets

The US Bureau of Labor Statistics will publish the July Consumer Price Index data on Wednesday. The report is expected to show a small decline in consumer inflation and core inflation. The monthly CPI is forecast to rise by 0.1%, following the 0.4% decrease recorded in June, while the annual reading is seen retreating to 3.4% from 3.5% reported in the previous month.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.