February 07, 2023 21:21 GMT
Moderately Firmer, USD Whipsawed By Powell Remarks
NZD/USD prints at $0.6320, ~0.2% firmer in yesterday's trading.
- The pair was pressured in yesterday's European session as risk-off flows weighed, dealing through its 200-day EMA ($0.6292) below finding support below $0.6280.
- NZD/USD rallied to session highs as Fed Chair Powell reiterated remarks that the disinflation process has begun before paring gains in volatile trade. Powell also noted further rate hikes were on the table if jobs gains remained strong.
- A rally into the close in US Equities helped NZD/USD firm in late trading, after again finding support at the 200-day EMA.
- AUD/NZD is ~0.8% firmer, and is testing the $1.10 handle.
- S&P500 rose 1.3%, DXY finished trading down ~0.2%. 10 Year US Treasury Yields were ~5bps higher.
- Bulls target a close above 50-day EMA ($0.6338). Bears look to break the 100-day EMA at $0.6259.
- The domestic data calendar is empty today.