NZD/USD Consolidates Amidst Lack of Catalysts



November marked the pair's worst month of the year, culminating in 2021 lows (0.6771) at the last day of the month. The move came after hawkish testimony of Fed Chair Powell on the US Senate, which was largely repeated in the House of Representative's yesterday.

Along with new Covid jitters, due to news of the first confirmed Omicron case in the US, it registered a losing day, but today it tries to react as sentiment seems to be a better place so far.

The pair may struggle for direction ahead of tomorrow's NFPs, but still any news around Omicron can potentially change that. Market participants will be looking for OPEC+ decision on oil output that could affect commodity currencies, while on the data front, US Jobless Claims stand out.

From a technical prospective, the Kiwi rejected its EMA100 on Wednesday and bias remains tilted to the downside. Risk for fresh 2021 lows (0.771) is high, whereas a larger decline that will test 0.6700 does not seem that easy at this point.

On the other hand, NZD/USD tries to recover and a push above its EMA100 (0.6830-40), would not be surprising. Such a move would ease downward pressure, but a catalyst is required for a recovery towards key 0.6868-76.

Past Performance: Past Performance is not an indicator of future results.

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Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.


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