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NZD / USD rejected at 0.6715, retraces back to 0.6690

  • NZD / USD fails to consolidate above 0.6700 and falls back to 0.6690.
  • Kiwifruit continues to be offered in a market with a risk appetite.
  • The NZD / USD could still retreat to the 0.6545 – UOB area.

The New Zealand dollar it failed in its first attempt to break the resistance at the 0.6715 / 20 zone and has retreated to 0.6690. The pair, however, remains positive for the day after a 0.9% rally from the lows of 0.6620.

Kiwifruit appreciates your appetite for risk

The NZD / USD it appreciates for the second day in a row Tuesday, driven by broad USD weakness amid increased risk appetite. With Americans going to the polls, the market appears to be pricing in a Democratic victory that would pave the way for a large stimulus package and thereby undermine demand for the US dollar.

The dollar is falling across the board with the US dollar index depreciating 0.6% after hitting a month-long high at 94.28 on Monday. The dollar rallied last week as rising COVID-19 cases in Europe and the US, combined with uncertainty about the US elections, fueled risk appetite and sparked a race. for safety.

NZD / USD could still pull back to 0.6545 – UOB

Despite the recent rally, the UOB currency strategy team recalls that risk is tilting lower and warns of a possible pullback to the 0.6545 zone: “The short-term bias is tilting lower, but any Weakness for the NZD is seen as part of the 0.6590 / 0.6710 range. The NZD is currently approaching the bottom of the range and as the bearish momentum has improved, there is room for the NZD to move towards the main support at 0.6545. At this stage, the outlook for a sustained decline below this level is not high. On the upside, a breakout of 0.6675 (‘strong resistance’ level) would indicate that the NZD is still trading in a wide range. ”

Credits: Forex Street

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