NZD/USD Looking at 0.6503 Support, US Debate on Cards

Justin Freeman
New Zealand coins stacked up

The New Zealand dollar experienced some temporary upturns following the announcement from the Reserve Bank of New Zealand that interest rates will be held firm.  In the immediate aftermath of the announcement, the currency went up a little in its pair with the greenback.

However, this was followed by a challenging few hours for the currency, and it was later spotted down at the $0.6597 level on the price charts.  According to some strategists, the pair is facing a serious chance of its losses becoming greater.  The price charts recently showed a negative candlestick pattern known as a ‘Shooting Star’ at one stage.

The pair’s Relative Strength Index is also showing common signs of a potential dip in value.  In terms of numbers, meanwhile, strategists said that the support range that the pair is currently looking at begins at 0.6503 and ends towards 0.6537.

From there, however, it could go to a lower range beginning at just above 0.63.  In terms of fundamental analysis, Wednesday evening will see a trade balance release from the country, covering the month of August.  However, it is, of course, not just events in New Zealand that could affect the value of this major pair.  Some potentially dollar-moving events are scheduled on the economic calendar for this week and next.  The attention of many traders has now turned to the upcoming US presidential debate between Donald Trump and Joe Biden, which takes place next Tuesday (29th September) in the city of Cleveland.

According to analysts, there are several areas of discussion on the cards – though two, in particular, will be closely followed by the markets.  These are expected to be the coronavirus pandemic and the economy.  Given that the candidates may make implications about the potential direction of government policy in their contributions, there is some potential for volatility.

On Thursday of this week, meanwhile, there will be the standard weekly round of jobs figures from the country.  Continuing claims for the dates around 11th September will be out at 12:30 pm GMT and are due to show a drop.  A drop is also expected for initial jobless claims for the week after.  This metric is due to go from 860,000 to 843,000.

Speeches from senior US financial figures will be placed firmly in the spotlight later on Thursday, with not one but two key addresses on the cards.  Jerome Powell, who chairs the monetary policy-setting Federal Reserve, will speak at 2 pm GMT in front of the US Congress.  At the same time, there will be a speech from Steven Mnuchin, who serves as the US Treasury Secretary.  This is due to take place at 2 pm GMT.


Justin Freeman

Latest news

Contagion Warning From Crypto Markets Could Be A Buy Signal
One of the reasons the 2020 market crash was so severe and sudden was that overextended investors sold out of positions to liquidate funds, which drove prices down further, and created a need for further selling. Read more
Market Guru Cathie Wood is Buying These Stocks Right Now
With the Nasdaq 100 index currently trading 28% lower than its January highs, the Q1 correction has transformed into a multi-month rout. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    City Index Logo
    ATFX Logo
    XM Logo
    Plus500 Small Logo
    IQ Option Logo
    Pepperstone Logo
    LegacyFX Small Logo
    OctaFX Logo
    FXTM Logo
    HYCM Logo
    IC Markets Logo
    skilling logo
    AvaTrade logo
    BDSwiss Logo
    Exness Small Logo
    BlackBull Markets Logo
    Forex.com Logo