During the Asia-Pacific briefing, it was reported that the S&P 500 and NASDAQ 100 experienced a second day of decline due to negative sentiment. The focus was on global growth concerns and indications of a persistently limited US labor market. Furthermore, it was noted that an upward trend in the S&P 500 is forming into a Rising Wedge pattern as its upward momentum weakens.
The NZD/USD, EUR/NZD, and GBP/NZD price setups are currently experiencing a decline in the New Zealand dollar. This decline is approaching critical support levels due to a reduction in hawkish Fed rate expectations. Moreover, there seems to be a decrease in momentum for EUR/NZD and GBP/NZD rallies. Therefore, it is important to identify the significant levels of support and resistance in these key NZD crosses.
The US Dollar’s future is uncertain after the debt deal was passed by the House of Representatives. Investors are watching the Federal Reserve for guidance. Treasury yields have decreased but stabilized, and it is unclear if the USD will continue to be strong if the Fed takes a less aggressive approach in June.
The recent decline of the Japanese yen prompts the question of whether it marks the beginning of a prolonged period of weakness against the US dollar. In early September, the USD/JPY exchange rate surpassed the critical resistance level of 138.00. Nevertheless, it is unwise to jump to conclusions about the trajectory of this currency pair.
The price of gold has experienced an upswing due to the decline in Treasury yields and the challenges faced by the US Dollar. As the Federal Reserve takes center stage, Treasury yields have relinquished some of their previous gains. In the event that Congress approves a resolution for the debt ceiling, it remains to be seen whether there will be a further rally in XAU/USD.