The New Zealand dollar has experienced a surge due to low levels of market volatility. As of late, the NZD/USD pair has been propped up by an increase in risk-taking behavior. However, the rally of the EUR/NZD appears to be losing steam. In regards to the AUD/NZD, it is being questioned whether or not its rally will continue over a medium-term timeframe.
The crude oil price exhibited significant fluctuations during the day but ultimately closed at a similar level to its opening price. The possibility of increased production from Iran as a result of a deal with the United States could offset cuts made by OPEC+. The future direction of WTI may be influenced by the performances of both the US and Chinese economies.
The US weekly jobless claims have risen to their highest since October 2021, indicating a softening US labour market and leading to a dovish adjustment in rate expectations towards the end of the year. The quiet economic schedule may lead to a drift in Wall Street ahead of the US Consumer Price Index and FOMC meeting outcome next week. Asian stocks are set for a positive open with Nikkei, ASX, and KOSPI tracking renewed gains in Wall Street overnight. Market focus will be on China’s inflation figures which are expected to reinforce a low-for-longer growth outlook. The Straits Times Index is attempting to defend a key upward trendline support while the USD/CHF has given back all its past two weeks’ gains with a 1.2% dive overnight following another failed attempt at overcoming the upper edge of its Ichimoku cloud on the daily chart.
On Thursday, the price of gold experienced a surge due to the weakening of the US Dollar. The rise in US jobless claims was unexpected and caused a decline in Treasury yields. As prices test support, XAU/USD Bullish Engulfing is under scrutiny.