- The New Zealand dollar remains capped below 0.5900.
- Investors are cautious pending the results of the US elections.
- NZDUSD’s negative outlook remains intact — Credit Suisse.
the new zealand dollar still unable to break above 0.5900 during the US session on Wednesday, after depreciating more than 1% on the day, due to market sentiment.
Investors cautious awaiting the outcome of the US elections
In the absence of relevant macroeconomic data, attention is focused on the outcome of the US elections, and investors are reluctant to place significant bets. The latest news has shown better than expected results for the Democrats, although both parties remain in a tight race to control Congress.
In addition, the release of the US October CPI data, to be released on Thursday, is expected to provide more insight into the Federal Reserve’s upcoming monetary policy decisions and thus could trigger a major dollar volatility.
NZD/USD: Negative outlook remains intact – Credit Suisse
In the longer term, Credit Suisse analysts maintain their bearish view on the pair, targeting 0.5600 and below: “The recent recovery, to our eyes, still looks, at least for now, like a corrective counter move within the downtrend So our broader negative outlook remains intact, albeit with a move back below 0.5854 then below 0.5600/5597 needed to turn the market on the way to the 0.5510 yearly low and then the 2020 low at 0.5468.”
Technical levels to watch
Source: Fx Street
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