On Thursday, the NZD/USD exchange rate saw significant selling and fell to new weekly lows.
COVID-
The USD reached three-month highs on the back of 19 worries and hawkish FOMC meeting minutes.
The bearish pressure on the perceived riskier kiwi was aided by the risk-off mentality.
In the previous hour, the NZD/USD pair continues to lose ground in the early European session, dropping to new weekly lows around 0.6965.
On Thursday, the NZD/USD pair saw significant selling and fell further from near three-week highs, or just above the 0.7100 barrier achieved earlier this week. A minor US dollar rise and a severe downturn in global risk sentiment fueled the steep intraday loss, which tends to dampen demand for the perceived riskier kiwi.
The dollar remained stable near three-month highs, supported by the FOMC minutes, which showed that the Fed may tighten monetary policy as early as this year. Fed policymakers agreed that if inflation or other threats arise, they must be prepared to act, implying that QE tapering conversations could begin in the coming months.
The USD bulls appeared unconcerned with the steady decrease in US Treasury bond yields, instead taking their signals from the current risk-off atmosphere. Investors are nonetheless concerned about the spread of the coronavirus’s highly contagious Delta version. This was evidenced by a steep drop in equity markets, which aided the greenback’s safe-haven position even more.
It’ll be fascinating to watch if negative traders can keep their advantage or if the NZD/USD pair can attract some buying at lower levels. The markets have begun pricing in the possibility of a Reserve Bank of New Zealand (RBNZ) interest rate hike in November. This should assist the NZD/USD pair minimize further losses by acting as a tailwind.
Nonetheless, the pair has crept within striking distance of last week’s lows, which were at 0.6945. This is followed by a YTD through near the 0.6925 area, which, if broken, will act as a new trigger for bearish traders and lay the stage for the NZD/USD pair to resume its previous downward trajectory observed over the last month or so.
Market players are now anticipating the publication of US Initial Weekly Jobless Claims data later in the early North American session. This, together with broader market risk sentiment, will have an impact on USD price dynamics, allowing traders to profit from short-term opportunities in the NZD/USD pair.
NZD/USD technical levels to watch The NZD/USD pair saw significant selling on Thursday, dropping to new weekly lows.
COVID-
The USD reached three-month highs on the back of 19 worries and hawkish FOMC meeting minutes.
The bearish pressure on the perceived riskier kiwi was aided by the risk-off mentality.
In the previous hour, the NZD/USD pair continues to lose ground in the early European session, dropping to new weekly lows around 0.6965.
On Thursday, the NZD/USD pair saw significant selling and fell further from near three-week highs, or just above the 0.7100 barrier achieved earlier this week. A minor US dollar rise and a severe downturn in global risk sentiment fueled the steep intraday loss, which tends to dampen demand for the perceived riskier kiwi.
The dollar remained stable near three-month highs, supported by the FOMC minutes, which showed that the Fed may tighten monetary policy as early as this year. Fed policymakers agreed that if inflation or other threats arise, they must be prepared to act, implying that QE tapering conversations could begin in the coming months.
The USD bulls appeared unconcerned with the steady decrease in US Treasury bond yields, instead taking their signals from the current risk-off atmosphere. Investors are nonetheless concerned about the spread of the coronavirus’s highly contagious Delta version. This was evidenced by a steep drop in equity markets, which aided the greenback’s safe-haven position even more.
It’ll be fascinating to watch if negative traders can keep their advantage or if the NZD/USD pair can attract some buying at lower levels. The markets have begun pricing in the possibility of a Reserve Bank of New Zealand (RBNZ) interest rate hike in November. This should assist the NZD/USD pair minimize further losses by acting as a tailwind.
Nonetheless, the pair has crept within striking distance of last week’s lows, which were at 0.6945. This is followed by a YTD through near the 0.6925 area, which, if broken, will act as a new trigger for bearish traders and lay the stage for the NZD/USD pair to resume its previous downward trajectory observed over the last month or so.
Market players are now anticipating the publication of US Initial Weekly Jobless Claims data later in the early North American session. This, together with broader market risk sentiment, will have an impact on USD price dynamics, allowing traders to profit from short-term opportunities in the NZD/USD pair./n
