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Market News The New Zealand dollar rose to a three-day high against the U.S. dollar! A series of factors weaken the U.S. dollar
The New Zealand dollar rose to a three-day high against the U.S. dollar! A series of factors weaken the U.S. dollar
The New Zealand dollar against the U.S. dollar continued to rise to a three-day high during the European time. A series of factors weakened the U.S. dollar and supported its New Zealand dollar against the U.S. dollar.
2021-11-15
8982
On Monday (November 15), the New Zealand dollar gained strong upward momentum against the US dollar for the second consecutive trading day. A series of factors weakened the U.S. dollar and still supported the New Zealand dollar against the U.S. dollar. The Fed’s hawkish expectations may help limit the decline in the U.S. dollar and limit the gains of the New Zealand dollar against the U.S. dollar.
The New Zealand dollar continued to rise against the U.S. dollar during European time and rose to a three-day high near the 0.7075-800 area in the past hour.
The currency pair continued the previous trading day's rebound from below the key psychological barrier of 0.7000, and gained some follow-up momentum on the first day of the new week. A series of factors kept the US dollar bulls on the defensive, which pushed the New Zealand dollar higher against the US dollar for the second consecutive trading day.
The depressing US data released last Friday weighed on the dollar. Data show that, due to soaring inflation, US consumer confidence fell to a 10-year low in November. In addition, the new round of decline in US Treasury yields and risk appetite further weakened the US dollar and further favored the New Zealand dollar, which is considered to be more risky.
This, coupled with rising bets on the Reserve Bank of New Zealand to raise interest rates again, still supports the continued positive trend of the New Zealand dollar against the US dollar. Nonetheless, the Fed’s tough expectations may prevent traders from being heavily bearish on the U.S. dollar and restrict the New Zealand dollar from rising sharply against the U.S. dollar, at least for now.
Investors seem to be convinced that the Fed will be forced to adopt a more active policy response to curb high inflationary pressures. In fact, federal funds futures show that the Fed’s probability of raising interest rates in July 2022 is 50%, and the probability of raising interest rates again in November next year is very high.
Therefore, it is prudent to wait for a wave of strong follow-up buying before confirming that the recent retreat from the highs of several months has ended. Market participants are now paying attention to US economic data, mainly the release of the New York Federal Reserve Manufacturing Index, which provides some impetus for later transactions in the North American market.
The upper resistance pays attention to 0.7093, 0.7135, and 0.7156, and the lower support pays attention to 0.7024, 0.7000, and 0.6982.
(New Zealand dollar against the US dollar daily chart)
At 20:44 GMT+8, the New Zealand dollar was quoted at 0.7075 against the U.S. dollar.
The New Zealand dollar continued to rise against the U.S. dollar during European time and rose to a three-day high near the 0.7075-800 area in the past hour.
The currency pair continued the previous trading day's rebound from below the key psychological barrier of 0.7000, and gained some follow-up momentum on the first day of the new week. A series of factors kept the US dollar bulls on the defensive, which pushed the New Zealand dollar higher against the US dollar for the second consecutive trading day.
The depressing US data released last Friday weighed on the dollar. Data show that, due to soaring inflation, US consumer confidence fell to a 10-year low in November. In addition, the new round of decline in US Treasury yields and risk appetite further weakened the US dollar and further favored the New Zealand dollar, which is considered to be more risky.
This, coupled with rising bets on the Reserve Bank of New Zealand to raise interest rates again, still supports the continued positive trend of the New Zealand dollar against the US dollar. Nonetheless, the Fed’s tough expectations may prevent traders from being heavily bearish on the U.S. dollar and restrict the New Zealand dollar from rising sharply against the U.S. dollar, at least for now.
Investors seem to be convinced that the Fed will be forced to adopt a more active policy response to curb high inflationary pressures. In fact, federal funds futures show that the Fed’s probability of raising interest rates in July 2022 is 50%, and the probability of raising interest rates again in November next year is very high.
Therefore, it is prudent to wait for a wave of strong follow-up buying before confirming that the recent retreat from the highs of several months has ended. Market participants are now paying attention to US economic data, mainly the release of the New York Federal Reserve Manufacturing Index, which provides some impetus for later transactions in the North American market.
The upper resistance pays attention to 0.7093, 0.7135, and 0.7156, and the lower support pays attention to 0.7024, 0.7000, and 0.6982.
(New Zealand dollar against the US dollar daily chart)
At 20:44 GMT+8, the New Zealand dollar was quoted at 0.7075 against the U.S. dollar.
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