News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $WTI Crude Oil is currently strengthening as the #OPEC meeting takes place. Crude Oil is now trading above the 62.00 level for the first time since Monday. $OIL $USO https://t.co/40oC26KYJG
  • there it is, $gbpjpy got the 150 handle https://t.co/32swpZM4Dx https://t.co/rv2d1CdXyR
  • Saudi Energy Minister: - Oil market has improved - Uncertainty around recovery has not receded - Urges caution and vigilance on oil market #OOTT #OPEC $OIL
  • $SPX testing confluent support, trendline + fibo level down here. $ES $SPY https://t.co/6DRaYoWuCV
  • 🇺🇸 Jobless Claims 4-week Average (FEB/27) Actual: 790.75K Previous: 807.5K https://www.dailyfx.com/economic-calendar#2021-03-04
  • 🇺🇸 Initial Jobless Claims (27/FEB) Actual: 745K Expected: 750K Previous: 736K https://www.dailyfx.com/economic-calendar#2021-03-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.89%, while traders in Germany 30 are at opposite extremes with 66.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OyiaWxTOe9
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/BBKTkI9fWl
  • German Finance Min. Scholz: Germany will need to take on extra debt in 2021. $EUR
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.19% 🇨🇦CAD: 0.10% 🇳🇿NZD: 0.04% 🇪🇺EUR: -0.24% 🇯🇵JPY: -0.34% 🇨🇭CHF: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6Fc3eqZNSZ
New Zealand Dollar Analysis: NZD/USD Weakens on Broader Risk Aversion

New Zealand Dollar Analysis: NZD/USD Weakens on Broader Risk Aversion

Thomas Westwater, Analyst

New Zealand Dollar, NZD/USD, Covid, UK Travel– Talking Points

  • Wall Street trades lower as investors digest new Covid-related restrictions
  • NZD/USD sees biggest daily loss since October as risk aversion rises
  • Light economic data prints in the week ahead leave Covid in spotlight
Advertisement

Covid is back in the spotlight for traders after a new variant, one that is perhaps more contagious, was identified in the United Kingdom. Researchers are still analyzing the possible mutation, but preliminary estimates are showing it to be nearly 70% more transmissible. South Africa is also seeing a possible mutation of Covid, separate from the UK’s strain. The emergence has caused a flurry of new travel restrictions from both countries.

The US Dollar rose in reaction, while Treasury yields fell as investors shifted to the traditional safe-haven assets. Meanwhile, U.S. equities sold off on Wall Street during Tuesday’s session with the Dow Jones and S&P 500 dropping 0.67% and 0.21%, respectively. The 10-year Treasury yield fell to 0.92% while the US Dollar (DXY) climbed 0.63%. The Greenback is still near multi-month lows, however.

US Dollar, 10-Year Treasury Yield, Nasdaq 100 - Daily Chart

10 year yield vs US Dollar chart

Chart created with TradingView

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Thomas Westwater
Improve your trading with IG Client Sentiment Data
Get My Guide

Wednesday’s Asia-Pacific Outlook

The New Zealand Dollar reflected the risk-off mood with NZD/USD dropping 0.80% on Tuesday as US Dollar inflows damaged recent gains in the pair. Still, the Kiwi remains higher versus the Greenback for December, but another day of weakness similar to Tuesday would bring NZD/USD to a negative stance for the month.

Given the lack of economic events on the docket, and combined with the Christmas holiday where many markets will be closed, risk trends will likely be dictated by the ongoing Covid situation, particularly the new strains in the UK and South Africa. However, France recently announced that it will re-open its border to essential travelers who have had a negative Covid test recently.

NZD/USD Technical Forecast:

NZD/USD’s recent weakness has dented some of the gains since October, but the overall bullishness likely remains intact above the 0.7000 psychological level. Bears scored a short-term victory by breaching the 20-day Simple Moving Average, but the longer-term 50-, 100-, and 200-day SMA’s still suggest that the broader trend remains biased higher.

The 23.6% Fibonacci retracement level from the August to December major move also appears to be offering recent support at 0.7010 which has stood several times this month. A break below would likely fuel bearish action. Coupled with a recent bearish MACD crossover, the 23.6% Fib retracement may likely be tested soon.

NZD/USD Daily Chart

NZD/USD Chart

Chart created with TradingView

NZD/USD TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES