NZD/USD remains vulnerable to some Trump hedges – ING

FXStreet Insights Team FXStreet

Another commodity currency – the Kiwi dollar (NZD) – will face a CPI test today, ING’s FX strategist Francesco Pesole notes.

NZD can find buyers in the 0.6000-0.6050 region

“The Reserve Bank of New Zealand (RBNZ) cut by 50bp this month on the view that inflation has decisively turned lower while growth concerns are building. That is also the basis for markets high conviction call on another half-point reduction in December.”

“While headline CPI should move back close to the 2.0% target range mid-point, we see risks that non-tradeable inflation ends up coming in hotter than the RBNZ hopes. Ultimately, NZD may also get some help from inflation today, as markets may no longer be certain about a 50bp December move.”

“NZD/USD remains vulnerable to some Trump hedges ahead of the election, but an improved rate profile can help the Kiwi dollar find buyers in the 0.6000-0.6050 region.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.