NZD/USD: The next support level to watch is 0.6040 – UOB Group

FXStreet Insights Team FXStreet

The New Zealand Dollar (NZD) is likely to trade sideways between 0.6065 and 0.6115. It may continue to weaken, and the next support level to watch is 0.6040, UOB Group analysts say.

A breach above 0.6135 to end the NZD weakness

24-HOUR VIEW: “While we expected further NZD weakness yesterday, we indicated that ‘the major support at 0.6040 is unlikely to come under threat.’ We also indicated that ‘there is another support at 0.6060.’ NZD weakened less than expected to 0.6069 before recovering to end the day unchanged at 0.6083. The price action is likely part of a sideways trading phase. Today, we expect NZD to trade between 0.6065 and 0.6115.”

1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (27 Jun, spot at 0.6080). As highlighted, NZD is likely to continue to weaken. The next support level to watch is 0.6040. Overall, only a breach of 0.6135 (no change in ‘strong resistance’ level) would mean that the NZD weakness from early last week has ended.”

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

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.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

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.