EUR/USD 1.17358
0.167%
Gold 3860.30
0.105%
Oil 60.597
0.184%
USD/JPY 147.333
0.057%
GBP/USD 1.34484
0.076%
GBP/JPY 198.143
0.134%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 3rd, Bank of America economists stated in a report that the UKs approximately £20 billion fiscal gap could be addressed through small tax increases, such as a gambling tax and a freeze on the income tax threshold. However, if the fiscal gap exceeds £20 billion, it may be difficult to fill without raising other taxes such as income tax, national insurance contributions, and VAT, or through cuts in public spending. The economists stated, "We note that raising VAT would be inconsistent with the Chancellors goal of reducing inflation, while a wealth tax appears increasingly unlikely."The French-German 10-year yield spread erased its previous narrowing trend and is now 82 basis points.French Socialist Party leader Faure: Le Cornus budget proposal has shortcomings.French Socialist Party leader Faure: The tax plan proposed by Le Cornu is far from our previous suggestions.On October 3rd, New York Fed President John Williams, a permanent FOMC member, stated on Friday that unpredictable changes are inevitable, and central banks need to recognize this and develop strategies to address these circumstances. He stated that coping with uncertainty requires strong principles and strategies to address a range of unexpected events, while noting that new situations will continue to emerge. Williams also stated that previously unconventional strategies, such as bond purchases, are no longer novel but rather a normal part of the toolkit. Furthermore, Williams stated that stabilizing inflation expectations is crucial and cannot be taken for granted.

Price Analysis: NZD/USD Symmetrical Triangle Indicates Decreasing Volatility, US NFP Awaited

Daniel Rogers

Feb 03, 2023 15:27

NZD:USD.png 

 

The NZD/USD pair is drifting sideways below the immediate resistance level of 0.6480 during the Asian session. The New Zealand dollar has traded sideways as investors await the publication of Caixin Services PMI and United States Nonfarm Payrolls (NFP) statistics for fresh impetus.

 

Weak earnings have broken the three-day winning streak of S&P500 futures, which are now displaying significant losses and a risk aversion trend. After a corrective dip, the US Dollar Index (DXY) is aiming to recapture Thursday's high above 101.55 as investors' risk appetite has reduced dramatically.

 

The NZD/USD pair is displaying a chart pattern known as a Symmetrical Triangle, which indicates a significant compression of volatility. The upward-sloping trendline of the chart pattern is taken from the low on January 19 at 0.6365, while the downward-sloping trendline is derived from the high on January 18 at 0.6531. The New Zealand asset saw a dramatic loss on Thursday after failing to find buying support following a breakout, which resulted in a fakeout that kept investors at unsustainable levels.

 

The Relative Strength Index (14) has moved from the bullish region of 60.00-80.00 to the neutral region of 40.00-60.00, indicating that a consolidation is imminent.

 

A decline below the January 31 low of 0.6412 will cause the New Zealand dollar to decline toward the January 17 low of 0.6366 and ultimately the January 12 low of 0.6300.

 

In contrast, for the asset to resume its upward trend, it must surpass Thursday's high of 0.6538, which would catapult it to June 3's high of 0.6576. A breach of this level will expose the asset to the 0.6600 level of resistance.


Suggestion