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. See our updated Privacy Policy here.

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
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
More View more
Real Time News
  • Heads Up:🇯🇵 Unemployment Rate (JUN) due at 23:30 GMT (15min) Expected: 3% Previous: 3% https://www.dailyfx.com/economic-calendar#2021-07-29
  • RT @KyleR_IG: Reasonably punchy move in $amzn shares in post market trade. https://t.co/E3paeY1rk6 https://t.co/VqgyRTRXY1
  • 🇳🇿 Building Permits MoM (JUN) Actual: 3.8% Previous: -2.4% https://www.dailyfx.com/economic-calendar#2021-07-29
  • Heads Up:🇳🇿 Building Permits MoM (JUN) due at 22:45 GMT (15min) Previous: -2.8% https://www.dailyfx.com/economic-calendar#2021-07-29
  • Bitcoin Price to Boost Coinbase as Robinhood IPO Flops $BTCUSD has propelled higher this week. With crypto outlook sanguine again, $COIN has potential to outperform $HOOD following its weak trading debut. Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/07/29/bitcoin-price-to-boost-coinbase-coin-as-robinhood-ipo-hood-flops.html https://t.co/cR8w1neoT5
  • Robinhood given an enterprise value of $32 billion after shares priced at $38. Get your market update here:https://t.co/fybAmxrAdo https://t.co/XeUn7kAZ0Q
  • 🇰🇷 Business Confidence (JUL) Actual: 97 Previous: 98 https://www.dailyfx.com/economic-calendar#2021-07-29
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.87% 🇨🇦CAD: 0.63% 🇨🇭CHF: 0.43% 🇯🇵JPY: 0.39% 🇪🇺EUR: 0.37% 🇦🇺AUD: 0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vH1UWZP3Gt
  • Robinhood closes its first session as a publicly listed company down just over 8% $HOOD https://t.co/4GOkrVfs1B
  • Heads Up:🇰🇷 Business Confidence (JUL) due at 21:00 GMT (15min) Previous: 98 https://www.dailyfx.com/economic-calendar#2021-07-29
US Dollar Faces Day Two of Powell Testimony. Will It Hold Up?

US Dollar Faces Day Two of Powell Testimony. Will It Hold Up?

Ilya Spivak, Head Strategist, APAC

US DOLLAR, POWELL, INFLATION, FED, NZD/USD – TALKING POINTS:

  • US Dollar holds up despite the markets’ dovish read on Powell testimony
  • Day two with the Fed Chair may be telling of underlying USD trend bias
  • NZD/USD downtrend still in play despite supportive RBNZ, Fed headlines

Fed Chair Jerome Powell walked a fine line on the first day of semi-annual testimony before the US Congress. The recent run-up in inflation took top billing as expected. The markets seemed to extract a narrowly dovish tilt from his carefully calibrated answers, pushing up gold prices as front-end bond yields fell.

The US Dollar weakened too, but held up conspicuously well considering the backdrop. Prices remained well within recent trading ranges, oscillating near the highs of the year against most of the Greenback’s G10 counterparts. That seems remarkably reserved relative to the action in other Fed policy proxies.

Another test of USD resilience beckons today as Mr Powell’s testimony continues. Having stood before the House yesterday, he will now move to the Senate. Carbon-copy prepared remarks aside, the questioning session may yet trigger a market-moving soundbite. The Chair will try his utmost to avoid this.

Indeed, the Fed’s strategy seems quite familiar: begin the delicate preparations for stimulus withdrawal while steadily soothing jittery markets to prevent a repetition of the 2013 “taper tantrum”. Yesterday’s Congressional outing in the wake of June’s momentous FOMC meeting is a case in point.

With that in mind, it may be telling to see if the US currency holds up under the weight of another dovish-leaning Powell appearance. When market action and incoming news-flow seem to clash, the price is almost always right. Avoiding a clear break lower now may thus speak to notable underlying strength.

The weekly jobless claims report headlines the data docket, with both initial and continuing claims seen ticking lower. European shares are feeling a bit of selling pressure while bellwether S&P 500 index futures point cautiously lower, flagging a risk-off mood. The perennially anti-risk Yen is duly outperforming.

NZD/USD TECHNICAL ANALYSIS – DOWNTREND HELD DESPITE CLASHING NEWS-FLOW

The New Zealand Dollar is having a curiously hard time building momentum against its US counterpart despite a surprisingly hawkish turn at the RBNZ and Mr Powell’s calming pronouncements. NZD/USD remains locked in a downtrend traced out since late May.

A formidable resistance block runs up through 0.7138. A daily close above that is probably a pre-requisite for neutralizing near-term selling pressure. Critical support is in the 0.6923-43 zone, marked by the late-March low. Breaching that barrier may set the stage for a descent toward the 0.68 figure.

New Zealand Dollar vs US Dollar price chart - daily

NZD/USD daily chart created withTradingView

FX TRADING RESOURCES

--- Written by Ilya Spivak, Head Strategist, APAC at DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES