- Weak fundamentals, souring market sentiment keeping the Kiwi capped on the low end.
- Risk appetite to be in the driver's seat with little data to drive the NZD.
The NZD/JPY whipped sideways through Wednesday's trading and is trying to find a leg up in the overnight session, testing just above 77.20.
The Kiwi is continuing to struggle against the encroaching Yen, and the NZD's bounce from 75.93 is running into resistance from the 8-day EMA. The macro calendar is a thin showing for the Kiwi this week, though yesterday saw the Global Dairy Trade Price Index came in at -0.6% versus the previous -0.5%, and today had New Zealand Manufacturing Sales for the 4th quarter print at 1.0% year-on-year versus the previous period's 0.3%.
The Kiwi whipped in Wednesday's trading but ultimately ended the day lower as an overall bearish bias in the pair continues to restrict any forceful upwards momentum. Market sentiment is also sending the pair whipping amidst trade war fears and turmoil within Donald Trump's White House following the resignation announcement of his top economic advisor, Gary Cohn.
NZD/JPY Technicals
The pair is trapped in bearish territory below the 200-day SMA, and last week's bounce appears to have come to an early end amid resistance. H4 candles have the NZD/JPY struggling to mark in new highs, and intraday support can be found from 76.80 to 76.55 with resistance priced in at 77.65 and 78.25
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Australian Dollar holds position near a psychological level, US Consumer Sentiment eyed
The Australian Dollar retreated due to the recovery of the US Dollar on Friday. The Australian Dollar is facing pressure due to the RBA's less hawkish stance on monetary policy. The US Dollar rebounded due to the expectations of the hawkish Fed maintaining higher rates for longer.
EUR/USD: Optimism surges ahead of the United States Consumer Price Index
An uneventful week ended with some more action, as choppy trading prevailed until Thursday. EUR/USD seesawed in a tight range just above the 1.0700 threshold for most of the week, with the US Dollar finally giving up and extending its slide while heading into the weekly close.
Gold resumes rally amid fresh rate cut hopes
Spot Gold price heads into the weekly close posting solid gains and changing hands at around $2,360 a troy ounce. XAU/USD struggled for direction, spending most of the week hovering between $2,300 and $2,330.
Could Worldcoin price shoot up 45% ahead of OpenAI’s live stream on Monday?
Worldcoin price has formed a double bottom around a key support level, suggesting a potential accumulation. If the OpenAI’s Monday live stream has a positive impact on Artificial Intelligence field, it could positively impact WLD and other AI-based tokens.
Week ahead: US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.