Nov 07, 2022
VOT Research Desk
Although it struggles to profit from the move, the NZDUSD pair draws some buying after a moderate bearish gap opening to the 0.5855-0.5850 region on Monday.
In the early European session, spot prices decline a few pip from the daily top and continue to trade defensively below the 0.5900 level. The USD is helped by a number of supportive variables to regain some positive momentum on Monday and somewhat make up for Friday’s post-NFP fall.
In fact, the erratic findings of the regularly watched US monthly jobs data encouraged rumours that the Federal Reserve would reduce the pace of upcoming rate hikes, which had a significant negative impact on the value of the dollar. However, rising US Treasury bond yields and a softer tone serve to restrain any further declines in the safe-haven dollar and act as a drag on the NZDUSD pair.
The market’s mood is still shaky due to worries about challenges brought on by China’s determination to uphold its economically damaging zero-COVID policy.
This is in addition to mounting concerns about a broader global economic slowdown and occurs amid the lengthy Russia-Ukraine war.
Even from a technical standpoint, the resumption of recent selling before the mid-0.5900s calls for caution for bullish traders. Therefore, it will be wise to hold off on positioning for any significant higher for the NZDUSD pair until there is substantial follow-through purchasing.
The USD is at the mercy of US bond yields because there aren’t any significant market-moving economic data coming out of the US today.
In addition, traders will use signals from the overall risk attitude of the market to seize short-term chances in the risk-sensitive Kiwi. As a result, the Prior to the announcement of the most recent US consumer inflation numbers on Thursday, the mixed underlying environment may cause short-term traders to take a break.
|
Daily SMA20 |
0.5718 |
|
Daily SMA50 |
0.5831 |
|
Daily SMA100 |
0.6039 |
|
Daily SMA200 |
0.6341 |
