Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Friday’s trading session, so far, has witnessed risk appetite improved as European and US equities trade remain in the green territory, ahead of the weekend on a busy week in the financial markets.
In the currencies’ space, risk-sensitive currencies led by the NZD and the AUD record gains, while safe-haven status ones fall. The NZD/USD surges, trading at 0.6730.
Russia’s attack on Ukraine persists for the third straight day. However, Russias Vladimir Putin reportedly would send a delegation to Minsk for talks with Ukraine. The headline shifted the market mood positively, increasing demand for riskier assets.
Bloomberg reported that Kyiv’s fall to Russian forces could happen in the next 24/48 hours. That could spur a swing in the market mood, increasing appeal for safe-haven status.
During the Asian session, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr crossed wires, saying, “We’re particularly concerned about inflation expectations,” considering conditions in Ukraine.
The Governor also commented that it would “Keep the possibility of moving rates quicker if necessary.”
The US economic docket featured Durable Goods Orders for January, at 1.6% m/m, higher than 0.6% estimated. US Federal Reserve’s favorite inflation gauge, the PCE, rose to 6.1% y/y, higher than the 5.8% foreseen, while Core PCE rose to 5.2%, more than the 5.1% expected.
Additionally, the University of Michigan Consumer Sentiment Final for February increased to 62.8, better than the 61.7
The NZD/USD is neutral biased, though it is trading above the 50-day moving average (DMA) at 0.6724, signaling that an uptrend would accelerate but would be subject to Friday’s daily close above the former.
If that scenario plays as planned, the NZD/USD would be exposed to upward pressure. That said, the NZD/USD first resistance would be the February 23 high at 0.6809.
Once cleared, the following resistance level would be the 100-DMA at 0.6850. Breach of the latter would expose January 13 daily high at 0.6890.
