2020-08-28 • Updated
NZD/USD has broken the marked downtrend that has been lasting for a month. Recently, it reached levels unseen since December 2019. What are the reasons?
NZD/USD has been mainly driven by the weakness of the US dollar. Yesterday, US Fed’s Chair Jerome Powell claimed that the Fed will allow inflation and employment to run higher. Therefore, the interest rates will stay at low levels for years to come. Most analysts took it skeptically as they believe these measures may lead to the fragility of the US economy. As a result, the dovish outlook of the Fed’s statement pressed on the greenback. Consequently, riskier assets surged, and the New Zealand dollar was just one of them. That goes against the wish of the Reserve Bank of New Zealand to see the kiwi depreciated, as it makes their goods and services more expensive for other countries. Indeed, the continued bid in the New Zealand dollar will be discouraging for the country.
Economic indicators also added headwinds to the kiwi this week. New Zealand’s retail sales turned out better than predicted this Monday: -14.6% vs. the forecast of -16.3%. Moreover, New Zealand reported a trade surplus, which came out almost matching expectations: 282 million New Zealand dollars, while 285 million were anticipated.
NZD/USD has surged above 0.6720 for the first time since the very beginning of this year. If the pair continues to rise and breaks the resistance of 0.6750, its next bullish target will be at 0.6790 – the high of July 2019. In the opposite scenario, the move below the psychological mark of 0.6600 will drive the price lower to the support of 0.6520. Follow further news and join the flow!
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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