NZDUSD Fundamental Outlook


The US 10-year Treasury yields eased to 2.452%, having risen to the highest levels since Oct-end at 2.472% yesterday. Get more on the 20 December NZDUSD Fundamental Outlook.

20 December, GKFX – The NZD/USD pair manages to find fresh bids near 10-DMA, which allows a bounce towards the 0.70 handle, although the recovery gains appear limited on the back of downbeat NZ fundamentals.

Key Quotes

  • Supported above 10-DMA of 0.6963.
  • Unexpected surge in NZ trade deficit to weigh?
  • US tax re-vote awaited.

NZD/USD: Risk-on back in vogue?

The spot is seen consolidating the Asian rebound, as the bulls lack vigour amid worrisome NZ economic news, as New Zealand’s trade deficit more-than-doubled last month while the final GDT auction for 2017 saw a 3.9% decline in the overall dairy price index,” Westpac reports.

More so, with the risk-off sentiment seeping back into markets amid the US government shutdown fears and tax reform bill re-vote, collaborate to the stalled recovery in the higher-yielding currency NZD.

Earlier today, the major quickly reversed the NZ trade data-led knee-jerk drop to near 0.6965 region, as the renewed weakness seen around the Treasury yields and US dollar helped eased the downward pressure. The US 10-year Treasury yields eased to 2.452%, having risen to the highest levels since Oct-end at 2.472% yesterday.

Next of relevance for the pair remains the US existing home sales data, as markets continue to eye the US tax bill re-vote due later today.

20 December NZDUSD Fundamental Outlook

The spot remains below the 0.7000 psychological level), with 0.6963 (10-DMA) and 0.6934 (Dec 13 low) key near-term downside areas. To the topside, a break above 0.7034 (2-month tops) could open doors towards 0.7043 (100-DMA).

Disclaimer

This article “20 December NZDUSD Fundamental Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

    Share Your Opinion, Write a Comment