More Fed Speakers Sound Dovish, Kiwi Jumps After RBNZ

FED OFFICIALS HELP SENTIMENT IMPROVE AGAIN, RBNZ LIFTS THE KIWI

The US dollar continued trading lower against the majority of the other G10 currencies on Tuesday and during the Asian session Wednesday. It underperformed the most against NZD, SEK, and AUD in that order, while it was found virtually unchanged versus CAD and JPY. The greenback eked out some gains only against GBP.

NASDAQ 100 — TECHNICAL OUTLOOK

After the mid-May reversal to the upside, the Nasdaq 100 cash index continues to slowly grind higher, as it trades above a short-term tentative upside support line taken from an intraday swing low of May 19th. The price is currently above all of its EMAs on our 4-hour chart, which adds more positivity, at least to the near-term outlook.

NZD/USD — TECHNICAL OUTLOOK

NZD/USD made a strong move higher during the Asian trading session, after the RBNZ policymakers stated that they expect a rate hike by September 2022. The pair managed to climb and stay above the 0.7305 hurdle, which is now the previous highest point of May. At same time, the rate continues to balance well above its steep short-term upside support line taken from the low of May 24th. As long as NZD/USD remains above that upside line, we will continue aiming higher.

AS FOR THE REST OF TODAY’S EVENTS

The calendar today appears very light, with the only release worth mentioning being the EIA (Energy Information Administration) report on crude oil inventories for last week, with expectations pointing to a 1.050mn barrels decrease following a 1.321mn barrels increase the week before. However, bearing in mind that yesterday, the API report revealed only a 0.439mn barrels slide, we would consider the risks surrounding the EIA report as tilted to the upside.

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