- NZD / USD gains have been capped by the 0.7150 level on Friday amid a small rally in the USD.
- The USD is likely to close in the green for the first time this week, with DXY consolidating just above the 90.00 level.
He NZD / USD It has traded heavily on USD dollar flows on Friday and given a broad recovery in USD strength it has struggled to rally above 0.7150. However, the pair remains well supported above the 0.7100 level and is currently trading at 0.7130.
USD increases
After four consecutive days of selling that caused the Dollar Index (DXY) to start the week just below 91.00 and hit the week lows at 89.70, the US Dollar finally finds a breather on the weekend and DXY has managed to back off. above the 90.00 level.
Widely optimistic comments from Fed Vice Chairman Richard Clarida (whom many consider to be the Fed’s “brain” given that he is the oldest member with experience studying economics, unlike Jerome Powell, who is an attorney for trade), they haven’t sparked much reaction, probably given the fact that the vast majority of market participants have already left for the weekend and haven’t even seen your comments. He made very little reference to short-term Covid-19-induced economic pain and instead was more optimistic about the longer-term outlook for 2021. Additionally, he expressed satisfaction with the Fed’s policy on hold as is (Which could disappoint growing market expectations for action through adjustments to the bank’s QE program in January).
Technical levels
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