New Zealand dollar looking for its footing

New Zealand dollar looking for its footing - MarketPulseMarketPulse


Home/Central banks/COVID-19/FX/Newsfeed/Technical analysis

Share 0

The New Zealand dollar has reversed directions in the Thursday session and is in positive territory. Currently, NZD/USD is trading at 0.7209, up 0.34% on the day.

NZ dollar trendless

The New Zealand dollar has bounced around all week, with the currency posting gains one day, only to give them up on the next day. This lack of a trend, which has characterized the New Year, is in sharp contrast to what we saw late in 2020. Then New Zealand dollar pummelled its US cousin in the final two months of the year, rising by 9.4 per cent. Cyclical currencies such as the kiwi have been outperformers against a sagging US dollar. A resurgence in Covid-19, a dovish Federal Reserve and a massive stimulus package of all weighed on the US dollar. However, if the US can tame Covid in 2021 and the economy shifts into fast gear, the US dollar could make up some ground against the New Zealand dollar. At the same time, a global recovery in 2021 would be positive news for New Zealand’s export-reliant economy, which could boost the kiwi.


Is US inflation on the way up?

Headline inflation in the US rose to 0.4% in December, matching the forecast. Importantly, this was the highest level since August and has raised expectations that inflation is finally on the way up. On an annual basis, CPI showed a gain of 1.3%, well below the Federal Reserve target of two percent. Core CPI ticked lower to 0.1%, down from 0.2% in the previous release. The shutdown of the US economy due to Covid-19 sent prices sharply lower, and with the US economy expected to show a strong recovery this year, some analysts are projecting inflation as high as 3 percent. Inflation has been dormant for quite some time, but that could change in 2021.


NZD/USD Technical


NZD/USD is facing weak resistance at 0.7223. This is followed by resistance at 0.7268 There is support at 0.7150. Below, we find support at 0.7122 The pair continues to put downward pressure on the 20-day MA line. If the pair can close below this line, that would be a bearish technical signal.

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

Pingtan Marine Enterprise Announces FY 2021 Guidan...
Farmmi Launches Specialized Chinese New Year Mushr...

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


Broker Search

Latest Spot Rate

27 January 2021
Key risk events today: Australia Inflation (CPI q/q); FOMC Statement, Federal Funds Rate Decision and Press Conference. (Previous analysis as well as outside sources – italics). EUR/USD: H4 resistance at 1.22/1.2180 (composed of the 1.22 figure, a co...
27 January 2021
NEW YORK, Jan. 27, 2021 /PRNewswire/ -- Planet Green Holdings Corp. (the "Company") (NYSE American: PLAG) announced today that the Company has entered into a Share Purchase Agreement with three investors (the "Transaction"). Pursuant to the agreement...
27 January 2021
US data, Italian politics - MarketPulseMarketPulse Home/Central banks/COVID-19/News events/Newsfeed/Treasuries Share 0 Markets expect dovish signal from Fed The Fed’s first policy meeting of the year should be a dovish affirmation that signals they a...
27 January 2021
Earnings galore! - MarketPulseMarketPulse Home/COVID-19/Earnings season/News events/Newsfeed Share 0 Tech earning  in spotlight Today is the calm before a tech earnings storm and an FOMC policy decision that attempts to avoid any communication mistak...
27 January 2021
Japanese yen - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed Share 0 The Japanese yen continues to range-trade early in the week. Currently, USD/JPY is trading at 103.67, down 0.06% on the day. BoJ minutes note concern ov...
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.