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The dollar is holding more firmly so far on the session


The dollar saw its six-week winning streak come to an end last week and fell further in the first two days of this week. However, it is finding ground so far in the day as buyers start showing up again.

This comes as the sense of risk is somewhat controlled, as mentioned here. EUR/USD is now down 0.5% at 1.0675 while GBP/USD is once again approaching a test of 1.2500. For cable, the most interesting technical development is that the price starts to drop below its 100-hour moving average:

After a sobering UK PMI report yesterday, the pound fell to test the level and it held. But we are starting to see a breakdown there now and if the sellers can stay below that and 1.2500, it could lead to further downside pressure for Cable. The 200 hour moving average will be a focal point at 1.2425.

Elsewhere, USD/JPY is stable as it holds up 0.2% at 127.00. Meanwhile, AUD/USD is down 0.3% to 0.7080, with today’s low testing its own 100 hourly moving average at 0.7070.

USD/USD

USD/USD

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered at virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other major economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered at virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other major economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
Read this term also fell significantly from its highs of 0.6510 to 0.6470 at the moment, still up 0.3% after the RBNZ announced a more hawkish rate hike earlier in the day.

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