NZD: NZD/USD - Looking To Challenge 0.5800-0.5850 As Risk Aversion Grows
The NZD/USD had a range overnight of 0.5851 - 0.5912, Asia is currently trading around 0.5855. Risk ...
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ASIA: Coming Up In Asia Pac Markets On Wednesday
| 2300BST | 0700HKT | 1000AEDT | South Korea Jan Unemployment Rate |
| 0000BST | 0800HKT | 1100AEDT | South Korea Feb First 10days Of Trade |
| 0000BST | 0800HKT | 1100AEDT | Australia 2037 Bond Sale |
| 0030BST | 0830HKT | 1130AEDT | Australia Q4 Housing Finance |
| 0130BST | 0930HKT | 1230AEDT | China Jan CPI & PPI |
| 0130BST | 0930HKT | 1230AEDT | RBA's Hauser- Fireside Chat |
| 0300BST | 1100HKT | 1400AEDT | South Korea Jan Bank Lending To Households |
Source: Bloomberg Finance L.P./MNI
NZD: NZD/USD - Consolidates Around 0.6050 Ahead Of US Data
The NZD/USD had a range overnight of 0.6035 - 0.6061, Asia is currently trading around 0.6045. The NZD momentum has stalled around 0.6050 as it consolidates its recent gains ahead of the US Labour data. On the day, the NZD bulls will be hoping the pair can regain its upward momentum to test the pivotal 0.6100 area. The first support is back toward 0.5990-0.6020 and then the 0.5900-0.5950 area.
- “The Fed reaction function is still driven by the US labor market more than anything else, so that investors would await tomorrow’s NFP print before drawing any conclusions about the timing of the next Fed cut,” said Valentin Marinov, head of G-10 FX research and strategy at Credit Agricole” - BBG
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5900(NZD301m Feb16), 0.6200(NZD430m Feb 16) - BBG
- The NZD/USD Average True Range for the last 10 Trading days: 61 Points
Fig 1: NZD/USD Spot Weekly Chart
Source: MNI - Market News/Bloomberg Finance L.P
USDCAD TECHS: Fades Fast Off Resistance
- RES 4: 1.3929 High Jan 16 and a reversal trigger
- RES 3: 1.3879 High Jan 20
- RES 2: 1.3768 50-day EMA
- RES 1: 1.3725 High Feb 02
- PRICE: 1.3535 @ 16:29 GMT Feb 10
- SUP 1: 1.3523/3482 Low Feb 10 / Low Jan 30 and the bear trigger
- SUP 2: 1.3473 Low Oct 2 ‘24
- SUP 3: 1.3400 50.0% retracement of the 2021 - 2025 uptrend
- SUP 4: 1.3359 Low Jan 31 2024
USDCAD price faded Monday in response to the generally softer USD theme, and that momentum has spilled over into Tuesday trade. Market focus is on whether the recovery from the Jan 30 low has now concluded and the broader downside theme can resume. The trend had been oversold, and the recent bounce has allowed this condition to fully unwind - making for a more attractive entry point for shorts. Key support and the bear trigger lies at 1.3482, the Jan 30 low. Resistance to watch is 1.3693, the 20-day EMA.
