Wednesday, October 5, 2022

New Zealand Dollar Rallies | Investing.com

-


The had another sideways yesterday session, finishing unchanged at 92.07, before edging lower to 92.02 in Asia in directionless trading. The dollar index remains mid-point between its breakout at 92.60 and structural support at 91.50, also home to its 100-day moving average. A break of either 91.50 or 92.60 will signal the dollar’s next directional move.

and edged higher yesterday, rising to 1.1870 and 1.3930 in Asia, but remain in range-trading mode ahead of Friday’s US . fell 0.25% to 109.00 yesterday as US yields continued to soften. With JGB’s also easing today, USD/JPY has climbed back to 109.10, but as a yield differential play, the risks still favour a test of support at 108.50.

New Zealand job data sends kiwi higher

Themain mover has been the New Zealand dollar, which has spiked 0.60% higher to 0.7060 after stellar unemployment data had markets scrambling to price in an RBNZ rate hike this morning. Markets are also pricing in two more hikes before the year-end, and the kiwi is now set to outperform in the weeks ahead, especially against low yielders like the JPY, and . Against the greenback, the kiwi looks set to test resistance at 0.7100, opening up a further rally targeting 0.7300. looks like it will test the December 2020 lows at 1.0420 sooner rather than later. A weekly close below 1.0420 targets an extended move lower targeting 1.0000.

The remains in a holding pattern versus the US dollar at 6.4640 today, and I am not expecting any fireworks before Friday. The , , and remain under Delta-variant and political pressure in the regional space. The fourth member of the fragile four, the , rallied once again yesterday, supported by international inflows to the equity market and subdued oil importer buying. is approaching support at the 100-day moving average (DMA) at 73.865, and if USD/INR falls through it, the cross will target 73.60. Although fragile three doesn’t sound nearly as good, I may have to review its fragile four membership at that stage.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,514FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories