NZD/USD keeps bounce off 0.6900 amid risk-on mood

Having recovered from 0.6900, NZD/USD seesaws around 0.6920 during the early Tuesday morning in Asia. The quote rose to the highest in 23-month high t  |  23/11/2020 22:34
  • NZD/USD trims losses from the highest level since December 2018.
  • US dollar recovery fades as trading sentiment improves on vaccine/stimulus hopes.
  • The absence of major data keeps risk catalysts on the driver’s seat.

Having recovered from 0.6900, NZD/USD seesaws around 0.6920 during the early Tuesday morning in Asia. The quote rose to the highest in 23-month high the previous day after New Zealand Retail Sales pleased the bulls. However, the following US dollar recovery and challenges to the trading sentiment dragged the kiwi prices to 0.6896 before taking them back to 0.6930 near the end of Monday.

Kiwi bulls remain hopeful…

With the third quarter (Q3) New Zealand (NZ) Retail Sales surprising markets with 28% QoQ gains, NZD/USD buyers add extra negative to the odds favoring the Reserve Bank of New Zealand’s (RBNZ) negative interest rates. The central bank Governor Adrian Orr also ruled out any such expectations, for now, during his latest speech. However, Thursday’s comments from the RBNZ Chief are likely to convey optimism, backed by the latest economies and vaccine hopes.

Other than the upbeat NZ data, more positives from the coronavirus (COVID-19) vaccine race and chatters concerning the US stimulus also helped the trading sentiment to remain positive.

However, a U-turn by the US dollar index (DXY) from the lowest since September 01, mainly backed by the upbeat PMIs, probed NZD/USD bulls during the American session.

Even so, the latest recovery in the risk-tone keeps the pair traders optimistic amid a lack of major data.

That said, Wall Street benchmarks jumped in the last hour to mark positive closing on Monday while the US 10-year Treasury yields also benefited from the recently upbeat mood while flashing 2.5 basis points (bps) of gains to 0.85% by press time.

Considering the lack of major data/events, NZD/USD traders are likely to keep a close tab on the risk catalyst for fresh impulse. Among them, the latest chatters over the US-China tussle can become an additional factor to watch, than what is already stated above.

Technical analysis

10-day SMA near 0.6900 offers immediate support to the NZD/USD prices ahead of the key support area around 0.6800. Bulls can eye late-2018 top surrounding 0.6975 as an intermediate halt before the 0.7000 psychological magnet.

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com