NZ dollar hits 33-month high

NZ dollar hits 33-month high - MarketPulseMarketPulse


Home/Central banks/COVID-19/FX/News events/Newsfeed/Technical analysis/US election

Share 0

The New Zealand dollar continues to rally this week. Currently, NZD/USD is trading at 0.7286, up 0.48% on the day. The pair has gained 1.4% this week and has touched a high of 0.7315 today, its highest level since April 2018.

More pain for the US dollar in 2021?

The US dollar has bid goodbye to a miserable year of 2020, but the currency could well find itself in retreat in early 2o21. The incoming Biden administration has pledged to implement further stimulus, and the Democrats are on the verge of controlling all three branches of the federal government if they can hang on to their narrow leads in the Georgia runoff election. This would allow the Democrats a free hand at pursuing policies such as raising corporate taxes and undoing pro-business legislation enacted under President Trump. These moves would likely be bearish for the US dollar, especially if more stimulus is on the way which will flood the economy with dollars. An increase in negative real yields in the US will exacerbate the woes of the greenback, and we can expect the rotation into pro-cyclical currencies like the New Zealand dollar, which has soared against the US dollar, to continue.

With Covid expected to diminish this year or even disappear completely due to the rollout of Covid vaccines, New Zealand’s export-reliant economy should bounce back in 2021. Just a few months ago, the New Zealand central bank was toying with adopting negative interest rates due to the severe economic downturn, but with the global economy slowly finding its footing, it’s a safe bet that these plans have been shelved for the foreseeable future. This removes a significant downside risk for the New Zealand dollar. Despite Covid-19, the New Zealand dollar has made impressive gains against the US dollar, and the short-term future for the currency is looking as bright as a beautiful New Zealand sunrise.


NZD/USD Technical


NZD/USD tested resistance at 0.7285 in the Asian session. Close by, there is support at 0.7319, followed by .07377 There is support at 0.7193. Below, we find support at 0.7135 The pair crossed above the 10-day MA line last week. This is a bullish development for the pair, which continues to move to higher levels

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Original author: Kenny Fisher


© MarketPulse

Pound dips on Bailey’s comments
OPEC reaches deal, gold itchy

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/


Broker Search

Latest Spot Rate

26 January 2021
Australian dollar hovering at 77 line - MarketPulseMarketPulse Home/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has kicked off the new trading week with slight losses. Currently, AUD/USD is currently trading at 0.7700, do...
26 January 2021
Pound dips at start of week - MarketPulseMarketPulse Home/COVID-19/News events/Newsfeed Share 0 The British pound has started the week with slight losses. Currently, GBP/USD is trading at 1.3660, down 0.17% on the day. Sterling breaks 1.37 level It w...
26 January 2021
EUR/GBP - Inverse Head and Shoulders Forming? - MarketPulseMarketPulse Home/FX/Newsfeed/Technical analysis Share 0 It’s been a strong run for the pound after the UK avoided a no-deal Brexit that would have been a massive setback for the economy as it...
26 January 2021
Oil and gold pare early gains, bitcoin rebounds - MarketPulseMarketPulse Home/Central banks/Commodities/COVID-19/Earnings season/Metals/News events/Newsfeed/Oil Share 0 Oil Crude prices pared early gains from a double dose of bad news on the COVID fr...
26 January 2021
Tech climbs higher, retail traders win GameStop battle, COVID in focus, Chicago Fed, euro sinks - MarketPulseMarketPulse Home/COVID-19/News events/Newsfeed Share 0 This week is all about mega-cap earnings, but the early focus is falling on Biden’s ag...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.