- The NZD/USD collapses about 0.5900 while the US dollar is firmly traded.
- The president of the United States.
- The torque struggles to stay above the 200 -day EMA, which quotes around 0.5910.
The NZD/USD torque trades 0.6% down close to the round level of 0.5900 during Thursday’s European negotiation hours. The Kiwi torque weakens as the US dollar (USD) is strengthened, after the comments of the president of the United States (USA) Donald Trump that he will not fire the president of the Federal Reserve (Fed), Jerome Powell.
The US dollar index (DXY), which follows the value of the dollar against six main currencies, firmly quotes in a maximum of more than three weeks around 99.00.
On Wednesday, the president of the United States. “I would love if he wants to give up, that would depend on him. They say he would interrupt the market if he did,” Trump said in an interview with the Royal Network America’s Voice.
Meanwhile, the operators have reduced the Fed Dovish bets, since the last report of the June Consumer Price Index (ICC) has shown that the prices of the products that are largely imported by the US. UU. They have increased.
The NZD/USD slides near the 200 -day exponential (EMA) mobile average, which is around 0.5910, suggesting that the general trend has become uncertain.
The 14 -day relative force index (RSI) falls below level 40.00, suggesting that a low momentum has been activated.
Looking ahead, a downward movement below the minimum of June 23, 0.5883 will expose it to a minimum of May 12, 0.5846, followed by the round level support of 0.5800.
In an alternative scenario, the Kiwi torque could rise to the maximum of June 19, 0.6040 and the minimum of September 11, 0.6100 if it manages to return above the psychological level of 0.6000.
GRAPH DIARY NZD/USD
US Dollar – Frequently Questions
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
