NZD/USD: Upward momentum is building – UOB Group

FXStreet Insights Team FXStreet

There appears to be sufficient momentum for New Zealand Dollar (NZD) to test 0.5980; a sustained rise above this level appears unlikely. In the longer run, upward momentum is building, but not significantly; NZD could edge higher, but it is currently unclear if it can reach 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sufficient momentum for NZD to test 0.5980

24-HOUR VIEW: "Although we expected NZD to 'advance further' yesterday, we indicated that it 'is unlikely to be able to reach 0.5960.' However, NZD rose and reached a high of 0.5967, before closing on a firm note at 0.5962. There appears to be sufficient momentum for NZD to test 0.5980 today, but a sustained rise above this level appears unlikely. The next resistance level at 0.6000 is also unlikely to come into view. Support levels are at 0.5945 and 0.5930."

1-3 WEEKS VIEW: "Our latest narrative was from two days ago (06 Aug, spot at 0.5910), in which we stated that NZD 'is expected to trade in a range between 0.5860 and 0.5960.' Yesterday, NZD rose above 0.5960, reaching a high of 0.5967. Upward momentum is building, but not significantly. From here, as long as NZD holds above 0.5910, we expect NZD to edge higher, but it is currently unclear if it can reach 0.6000."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold: Sell-off meets support near $4,250… for now

Gold accelerates its downward trend on Monday, coming close to the $4,250 mark per troy ounce, or multi-week lows, on the back of the intense rebound in the US Dollar and US Treasury yields across the curve. The precious metal’s retracement comes on the back of steady speculation of an interest rate increase by the Fed and reignited inflation worries in response to the rally of crude oil prices.

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.