Market news

22 December 2021

NZD/USD eyes test of 0.6800 level, but 21DMA at 0.6792 acting as resistance for now

  • NZD/USD has rallied on Wednesday, but has now into resistance at the 21DMA at 0.6792.
  • Further substantial gains are not expected amid a broader subdued feel to financial market trade pre-holidays.

Despite the subdued tone to trade in global equities and commodity complex as markets enter “holiday mode”, FX markets are adopting an increasingly risk-on bias, and this is supporting NZD. NZD/USD has thus been advancing in recent trade, rallying from overnight lows in the 0.6940s to current levels just shy of the 0.6800 mark. At current levels in the 0.6790s, where the pair trades with on-the-day gains of about 0.4%, the 21-day moving average at 0.6792 is offering some resistance.

Amid the lack of broader financial market conviction and slow newsflow, where focus predominantly remains on the global spread of Omicron and reaction from government authorities, a further spurt above 0.6800 for NZD/USD would be surprising. News on Omicron has been mixed and there hasn’t really been much to alter the macro narrative. European nations continue to assess whether tighter curbs are required to reduce transmission and cases are surging in the US, which is bad, but the good news is that evidence continues to suggest that Omicron is milder than delta.

According to analysts at ING, the couple of weeks either side of Christmas day usually see low volatility for currencies, though they caution that “this year some seasonal tendencies will be mixed with the Omicron variant threatening to force new restrictions and markets still processing a week full of key central bank decisions”. So even if NZD/USD is able to break to the north of the 0.6800 level, it seems unlikely that it would break substantially above earlier December highs in the 0.6830-0.6860 area.

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location