NZD/USD reclaims 0.6400 handle, over one-month tops
Our preference: the upside prevails as long as 0.6392 is support.
Alternative scenario: below 0.6392, expect 0.6372 and 0.6360.
The prevalent USD selling bias helped regain positive traction on Monday.
The recent optimism over a partial US-China trade deal remains supportive.
The NZD/USD pair climbed to over one-month tops in the last hour,
with bulls now looking to extend the momentum further beyond the 0.6400 handle.
The pair added to its recent goodish recovery move from multi-year lows and continued gaining positive traction for the third consecutive session on Monday in the wake of some follow-through selling around the US Dollar.
Persistent USD selling remained supportiveDespite a goodish intraday pickup in the US Treasury bond yields, supported by improving global risk sentiment,
the USD bulls remained on the defensive amid expectations that the Fed will cut interest rates again in October.
This coupled with recent optimism over phase one deal between the world’s two largest economies remained supportive of the bid tone surrounding perceived riskier currencies – including the New Zealand Dollar.
In absence of any major market-moving economic releases from the US, it will not be interesting to see if bulls are able to maintain their dominant position or opt to take some profits off the table on the first day of a new trading week.