- NZD/USD gains have been capped by the 0.7150 level on Friday amid a minor recovery in USD.
- USD looks likely to close in the green for the first time this week, with DXY consolidating just above the 90.00 level.
NZD/USD has traded largely as a function of USD dollar flows on Friday and given a broad pick up in USD strength, has struggled to rally beyond the 0.7150 mark. The pair remains well supported above the 0.7100 level, however, and currently trades in the 0.7130s.
USD perks up
After four straight days of selling that took the Dollar Index (DXY) from starting the week just under 91.00 and hitting lows of the week in the 89.70s, the US dollar is finally finding some respite into the weekend and DXY has managed to clamber back above the 90.00 level (just).
Broadly upbeat remarks from Fed Vice Chair Richard Clarida (who is seen by many as “the brains” at the Fed, given he is the most senior member with a background in the study of economics, as opposed to Jerome Powell who is a lawyer by trade), have failed to stir much of a reaction, likely given the fact that the vast majority of market participants have already left for the weekend and not even seen his remarks. He made very little reference to near-term Covid-19 induced economic pain and instead sounded more upbeat on the longer-term outlook for 2021. Moreover, he expressed contentment with the Fed’s policy on hold as is (which might disappoint growing market expectations for action via tweaks to the bank’s QE programme in January).
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD recovers from two-year lows, stays below 1.0450
EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
S&P Global PMIs set to signal US economy continued to expand in November
The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.