FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%
HotForex information and reviews
HotForex
87%

NZD/USD struggles for direction, flat-lined above mid-0.7100s


9 November 2021

The NZD/USD pair seesawed between tepid gains/minor losses through the early part of the European session and was last seen trading in the neutral territory, just above mid-0.7100s. The pair struggled to capitalize on its gains recorded over the past two trading sessions and witnessed some selling near the 0.7175 resistance zone on Tuesday. A softer risk tone turned out to be a key factor that weighed on the perceived riskier kiwi, though the downside remains cushioned. Investors turned cautious amid growing acceptance that rising inflationary pressures could force major central banks to hike interest rates earlier than anticipated. The nervousness prompted some profit-taking in the equity markets following the recent strong runup to record high levels.

Meanwhile, the risk-off impulse, along with the Fed's dovish outlook triggered a fresh leg down in the US Treasury bond yields. This, in turn, forced the US dollar to prolong its retracement slide from YTD tops touched on Friday and helped limit deeper losses for the NZD/USD pair.

Apart from this, rising bets for another rate hike by the RBNZ should act as a tailwind for the major and attract some dip-buying at lower levels. That said, traders might refrain from placing fresh bullish bets ahead of Wednesday's release of the US consumer inflation figures.

The markets have been pricing in the possibility of an interest rate hike move by the Fed in 2022 amid worries about a faster rise in inflation. The speculations were reaffirmed by the overnight hawkish comments by a slew of FOMC members, signalling that the central bank could raise rates.

The US CPI report for October will influence Fed rate hike expectations and influence the USD price dynamics, which, in turn, should provide a fresh directional impetus to the NZD/USD pair. In the meantime, traders might take cues from Tuesday's release of the US Producer Price Index (PPI) and Fed Chair Jerome Powell's remarks later during the early North American session.

#source

Share:


Related

NZD/USD reclaims the 0.6800 figure amid a mixed market mood
NZD/USD reclaims the 0.6800 figure amid a mixed market mood

The risk-sensitive NZD advances on a mixed-market mood. US Treasury yields rise, though falter of dragging the greenback, which heads south of the 96.00 threshold...

30 Dec 2021

NZD/USD looks weaker below 0.6800 mark
NZD/USD looks weaker below 0.6800 mark

A combination of factors failed to assist NZD/USD to capitalize on its early modest uptick. The cautious market mood capped the perceived riskier kiwi amid a subdued...

10 Dec 2021

Scope for dips towards the 0.6793-0.6776 confluence zone
Scope for dips towards the 0.6793-0.6776 confluence zone

A dovish Reserve Bank of New Zealand (RBNZ) policy outcome this week, accompanied by a bloated NZD long positioning sees the kiwi breaking under a protracted...

25 Nov 2021

Move beyond 50% Fibo. sets the stage for further gains
Move beyond 50% Fibo. sets the stage for further gains

NZD/USD gained strong traction for the fifth consecutive session on Tuesday. Sustained break through the 0.7100 confluence hurdle favours bullish traders...

19 Oct 2021

NZD: Buy the Rumor sell the fact?
NZD: Buy the Rumor sell the fact?

The RBNZ confirmed a 25-basis-point rate raise, which had been widely anticipated and already factored into the markets. The NZD, however, did not benefit from the boost...

14 Oct 2021

NZD/USD pares intraday gains, up little around 0.6915-20 area
NZD/USD pares intraday gains, up little around 0.6915-20 area

The risk-on impulse provided a modest boost to the perceived riskier kiwi on Thursday. Hawkish Fed expectations acted as a tailwind for the USD and capped gains for the pair...

7 Oct 2021


XM information and reviews
XM
86%
FXCM information and reviews
FXCM
85%
AvaTrade information and reviews
AvaTrade
84%
LegacyFX information and reviews
LegacyFX
83%
FP Markets information and reviews
FP Markets
82%
Pepperstone information and reviews
Pepperstone
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.