NZD/USD: 4hr 200 EMA at 0.6937 anchoring the rally
Currently, NZD/USD is trading at 0.6925, up 0.62% on the day, having posted a daily high at 0.6943 and low at 0.6878.
U.S. Treasury yields fall amid flight to safety
The Trump allegations have sent the USD into a tailspin and US treasuries are paid right down to 2.2364% the low so far in the 10 years. The Yen has also been a driver, with NZD/JPY adding weight in London today as USD/JPY busted below the 112 handle to 111.21 the low in the US shift.
All the latest on Trump:
- US Dollar tumbles further on Trump jitters
- US: Trump’s travails starting to weigh on the dollar – ING
- US: Trump headlines stealing the show – Deutsche Bank
- Rep. Adam Schiff: Impeachment cannot be perceived as an effort to nullify the election by other means
- US Rep. Al Green: The President Must Be Impeached
- US House Speaker Ryan: Need the facts on Comey & Russia reporting - LiveSquawk
- US Rep. Al Green: Today, I will call for the impeachment of the President
“Comey memo says Trump asked FBI Chief to drop Flynn probe” was the FT headline on the story that roiled markets overnight and that extended into today's European/London and US shifts. The question now is whether this is a short-lived quake after the initial tremors of late around this situation in the markets or whether a tsunami and long lasting damage are on the horizon for the US political and economic climate, the dollar and risk?
NZD/USD levels
0.6920/50 is the immediate resistance area where the 200 4hr EMA is located, anchoring in the Kiwi. A break through the midpoint opens up the 0.7000 level. Then there are the 17th April highs of 0.7035 ahead of 0.7060/70, being a further key resistance area through the 200-d ema (0.7037). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance. To the downside, 0.6880, where the 4hr ma's gather and 0.6840 are the near term supports.