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February 23 - Analysts say that as skepticism surrounding artificial intelligence grows, Wall Street is increasingly worried that the chip giants earnings this week will drag down its stock price. Nvidias stock has been trading sideways for months, rising only 1.7% since the beginning of the fourth quarter of last year, slightly below the S&P 500s 3.3% gain over the same period. Nvidias recent lackluster performance is largely due to increased investor concerns about spending hundreds of billions of dollars on AI development, leading to capital outflows from large-cap tech stocks. However, the stock market also faces numerous external risks, including geopolitical instability and reduced expectations of interest rate cuts. All of this puts Nvidia in a delicate position when it releases its fourth-quarter and fiscal year results on Wednesday. Investors expect its results to far exceed Wall Street expectations and raise forecasts for the coming quarters. But the company may have little to do or say to drive a meaningful rise in its stock price. Nvidias stock price has fallen after its last two earnings releases.February 23 – The Iranian Foreign Ministry stated that its foreign minister and Iraqi foreign minister held a telephone conversation on Sunday evening. During the call, they reviewed and discussed the latest regional and international situation. The Iranian foreign minister briefed Iraq on the progress of the Iran-US nuclear negotiations. The Iraqi foreign minister emphasized Iraqs support for the ongoing diplomatic process and expressed hope that the ongoing talks would yield favorable results for Iran and bring peace and stability to the region.On February 23, local time, European Parliament International Trade Committee Chairman Alain Lange announced via social media that he would propose a suspension of the European Parliaments ratification of the EU-US trade agreement due to the "chaos" caused by the US Supreme Courts ruling that the US governments massive tariff policies were illegal. Lange stated that clear stipulations and legal certainty are needed before any further measures can be taken, and he will formally propose on the 23rd that the European Parliament temporarily freeze the ratification process of the trade agreement with the US until a proper legal assessment and clear commitment from the US are obtained. The EU-US trade agreement was reached last July, with the US imposing a 15% tariff on EU goods imported into the US.Gaza Situation: 1. Israel says it will not provide funding to the so-called "Peace Committee." 2. Israeli Prime Minister Netanyahu: Plans to establish an alliance system in or within the Middle East. Iran Situation: 1. Iranian Foreign Minister refutes Trumps comments on the number of casualties in the Iranian unrest. 2. Iranian Foreign Minister: May meet with US envoy on the 26th, an agreement with the US is imminent. 3. Omans Foreign Minister says the next round of negotiations will be held in Geneva on the 26th. 4. US media: US and Iranian negotiators are expected to meet in Geneva on Thursday. 5. US media: Several people close to Trump advise against bombing Iran, Senator Graham opposes this. 6. US Presidential Envoy Witkov: Iran may be able to produce industrial-grade bombs "within about a week." 7. British media: Iran refuses to export its highly enriched uranium stockpile but is willing to dilute the enrichment level of the uranium. 8. Iranian media: If war breaks out, Jordan, the Trump familys economic interests in the Persian Gulf, including investments in the UAE, will be the main targets. 9. Iranian official: The negotiations covered nuclear commitments, US commitments to lift sanctions, and economic cooperation; the removal of Irans high-purity uranium stockpile was not discussed. Transferring mines and oil fields to the US is not considered. 10. Senior Iranian official: Iran and the US have disagreements on sanctions relief; the two sides plan indirect talks in early March, possibly reaching a provisional agreement first. 11. US media: Khamenei has completed wartime planning, designating four levels of successors for each military command and government position he appoints. 12. US media: Trump favors initial strikes against Iran in the coming days, with a larger-scale attack possible in the coming months. Other: 1. Pakistan launched airstrikes on multiple civilian areas in Afghanistans Nangarhar and Paktika provinces. 2. The Pakistani military claims to have killed more than 80 people in airstrikes along the Pakistan-Afghanistan border. February 23 – Pakistani military sources stated on the 22nd that airstrikes conducted by the Pakistani military on the night of the 21st along the Pakistan-Afghanistan border resulted in the deaths of over 80 terrorists. The Pakistani Ministry of Information and Broadcasting issued a statement on social media platforms early on the 22nd, saying that the Pakistani military launched airstrikes, precisely targeting seven terrorist camps and hideouts along the Pakistan-Afghanistan border. The statement said that Pakistan took this action in light of a series of recent suicide bombings in Pakistan.

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.