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NZDUSD bears cheer RBNZ status-quo, FOMC minutes eyedAlthough RBNZ Governor Adrian Orr could pull the NZDUSD prices back from a yearly low, not to forget mentioning the two-month-old support line, the New Zealand central bank’s refrain from a widely anticipated rate hike keeps the kiwi pair sellers hopeful. Also favoring the NZDUSD bears is the sustained downside break of 200-SMA and the previous support line from July 20 amid bearish MACD. That said, the quote currently drops towards the 0.6900 threshold before the recently flashed nine-month low of 0.6867. It should be noted that a downward sloping trend line from June 18, near 0.6860, can challenge the pair’s further downside. Meanwhile, August 10 lows near 0.6970 guard the quote’s corrective pullback ahead of 200-SMA and support-turned-resistance line, respectively around 0.6990 and 0.7005. During the NZDUSD upside past 0.7005, the previous week’s top close to 0.7060 and a six-week-old downward sloping resistance line close to 0.7080 will be important to watch. It’s worth noting that the FOMC minutes should reject the tapering tantrum, which is less likely, to recall the NZDUSD bulls.
Short
by MTradingGlobal
Pound steadies on sharp Construction PMIThe British pound has reversed directions on Thursday and posted slight gains. Currently, GDP/USD is trading at 1.3759, up 0.16% on the day.  It has been a week of sharp swings for the pound. The week started with GBP/USD punching above the 1.39 line, but the pair could not hold on to these gains and fell close to the 1.37 level, before steadying on Thursday. Investors ditched the pound as the AstraZeneca vaccine remains under scrutiny. The European Medicines Agency said there was a possible link with rare blood clots, and the UK responded by saying it would offer alternatives to AstraZeneca. This led to GBP/USD and EUR/GBP recording sharp losses during the week. Overshadowed by the news over AstraZeneca were fine performances by UK PMIs for February. On Wednesday, Services showed strong growth, as the PMI accelerated from 49.5 to 56.3, well above the neutral 50-level. This was followed by a sparkling Construction PMI, which jumped from 53.3 to 61.7, its highest level since September 2014.  A successful vaccine rollout in the UK has allowed the government to continue lifting health restrictions, which is boosting economic activity.  The FOMC minutes reiterated that the Fed remains in dovish mode, despite the improvement in the US economy. Policymakers at the Fed remain firmly of the view that the US economy still requires support until the recovery has deepened. With significant slack in the economy, inflation remains at low levels. The Fed believes that any rise in inflation due to improving economic conditions will be temporary. There had been some speculation that FOMC members might hint at a tapering of QE, given the sharp improvement in employment numbers, but the minutes made clear that any tapering of QE is off the table for the time being. On the downside, GBP/USD continues to test support at 1.3742. Below, there is support at 1.3650 1.3889 is the next resistance line, followed by resistance at 1.3944
by OANDA