NZDUSD Fights To Gain Traction

NZDUSD fights to gain traction. The pair is facing challenges in gaining momentum above the 0.6100 level. Despite some buying interest, the pair lacks conviction within the trading range established on Friday. The USD’s strengthening is a primary factor hindering the pair’s upward movement. However, there is some support for the risk-sensitive Kiwi at the moment. This is due to the positive tone observed in US equity futures.

US Dollar Surges Increase

Nevertheless, demand for the USD is increasing as market expectations of more rate hikes by the Fed grow. The recent Non-Farm Payrolls (NFP) report appears to be slightly disappointing. It indicates solid wage growth and a lower jobless rate. This, however, suggests a potentially smooth landing for the US economy and the possibility of another rate hike. As a result, the USD is being bolstered, causing a rise in US Treasury bond yields.

Despite this, concerns about China’s post-COVID recovery are tempering the overall optimism of antipodean currencies, including the NZD. Traders are advised to exercise caution when considering fresh bullish bets on the NZDUSD pair.

NZDUSD Traders Expectation

Looking ahead, Monday does not have any major economic data releases from the US. Instead, traders will closely follow speeches by influential members of the FOMC for insights into the Fed’s future rate hike decisions. Additionally, the direction of US bond yields and overall risk sentiment will play vital roles in driving USD demand. It will also present short-term trading opportunities in the NZDUSD pair. As traders navigate the NZD/USD market, staying informed and responding to market shifts will be fundamental. Observing key levels, market sentiment, and the actions of market makers will provide helpful insights into potential trading opportunities. This is to help manage risk effectively.

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