NZD/USD bulls move in on US Dollar weakness with eyes on the Fed – Crypto News – Crypto News
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NZD/USD his two-year lows near 0.6000 after US data NZD/USD his two-year lows near 0.6000 after US data

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NZD/USD bulls move in on US Dollar weakness with eyes on the Fed – Crypto News

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3 years ago

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  • NZD/USD firms up on US Dollar weakness as focus switched to the Fed next week.
  • China lifted sentiment with the nation announcing some easing in its zero-COVID strategy.

NZD/USD is higher by some 0.75% in the day so far having climbed from a low of 0.6309 to a high of 0.6384 while the US Dollar gives up the prior day’s gains as the DXY moves into a key level of resistance ahead of the 106 level.

The greenback is under pressure as news from China lifted sentiment with the nation announcing some easing in its zero-COVID strategy. There were reports that people with Covid can now isolate at home rather than in state facilities if they have mild or no symptoms. They also no longer need to show tests for most venues and can travel more, giving risk sentiment a lift mid-week.

Meanwhile, weaker US unit labor costs may have weighed in on Wednesday leading to a move in both US bond yields and the greenback. ”The focus remains global, and while we are somewhat skeptical about the sustainability of lower US bond yields given Fed rhetoric, markets clearly want to move onto the next cycle and are fading end-of-cycle factors and hawkish Fed overtones,” analysts at ANZ Bank said. ”That speaks to volatility going into and in the wake of next week’s Fed meeting; that seems to be the key takeaway.

Looking ahead to next week’s meeting, Federal Reserve’s Chair Jerome Powell most recently said that the US central bank could scale back the pace of its rate increases “as soon as December.” Futures contracts tied to the Fed policy rate still imply a 70% chance that central bankers will slow the pace of rate hikes when they meet Dec. 13-14.

The Fed’s chair Powell’s comments have prompted the market to price in a lower peak interest rate, which Fed funds futures showed on Wednesday was 4.933%, down from a recent high of 5.1%. Markets are now rethinking this to a 5%-5.25% range by May, as per the futures contract prices and the CME Fed watch tool.

Meanwhile, noting that the USD has stopped appreciating and is now in full retreat, analysts at ANZ Bank argued that ”even if the USD has peaked and further depreciation occurs (strengthening the NZD), volatility has picked up and it could be a bumpy ride.

USD/NZD

Overview

Today last price0.6362

Today Daily Change0.0041

Today Daily Change %0.65

Today daily open0.6321

Trends

Daily SMA200.6191

Daily SMA500.5912

Daily SMA1000.603

Daily SMA 2000.6286

levels

Previous Daily High0.6355

Previous Daily Low0.6303

Previous Weekly High0.6477

Previous Weekly Low0.6155

Previous Monthly High0.6314

Previous Monthly Low0.5741

Daily Fibonacci 38.2%0.6335

Daily Fibonacci 61.8%0.6323

Daily Pivot Point S10.6298

Daily Pivot Point S20.6275

Daily Pivot Point S30.6246

Daily Pivot Point R10.6349

Daily Pivot Point R20.6378

Daily Pivot Point R30.6401

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