- NZD/USD has been seeing some action in the Americas despite the Thanksgiving US holidays in North America.
- NZD/USD has risen from 0.6793 in the Americas to a high of 0.6821 and is currently trading at 0.6818 on the latest move as we head over to early Asia in the wind down into the close for the week where traders will be focused on weekend political developments and headlines.
The Kiwi was in heavy supply in yesterday’s NY shift from 0.6854 down to 0.6789 in European markets overnight. The currency was able to correct higher from there in thin liquidity where trading volumes were light and despite ongoing concerns from investors with respect to global growth and political angst.
Analysts at ANZ Bank New Zealand Limited explained that the focus very much remains on risk sentiment, with the NZD moving around with global equities:
“The US was out for Thanksgiving, meaning trading was a little more subdued, but that didn’t stop kiwi flirting back with the 68 cent level. Expect it to drift into the close of the week.”
There have been some positive developments on the Brexit front bringing the saga to a critical juncture. There has been a twenty-six-page political declaration, which sketches out the future relationship between the EU and Britain for decades to come. This will be reviewed by EU leaders this weekend and risks will depend on the outcome atthe start of next week.
If the political declaration passes the EU approvals, then that will be another task completed in PM May’s pursuit towards finalising all that is needed before starting the process of getting MPs to back the deal. So far so good, and risk positive, yen negative. The problem that May faces is that most MPs are currently against the deal that PM May is proposing to take to Parliament, but if she can somehow get it approved, it will still then need to be ratified by the European Parliament.
NZD/USD levels
- Support 0.6700
- Resistance 0.6890
The bird found its wings on the back of a very strong employment report earlier int he month where the 0.68 handle was accomplished with the price pierced the 38.2% retracement fibo (0.6810) of the 2018 sell-off from 0.7441 highs to 0.6427 2018 lows. NZD/USD then had a look in at the 161.8% extension level at 0.6870 where bulls managed to score a high of 0.6884 guarding 0.6929, as the 50% fibo of the 2018 range – (weekly RSI still has room to go). The 10-D SMA supports converging with the 0.6788 S1 pivot point.
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