NZD/USD reverses dramatically and tumbles to fresh one-year lows under 0.6780
30.11.2021, 16:07

NZD/USD reverses dramatically and tumbles to fresh one-year lows under 0.6780

  • Dollar jumps after Powell’s comments, reaching fresh YTD highs.
  • NZD/USD tumbles more than 80 pips from the top to the lowest since November 2020.

The NZD/USD peaked at 0.6855, the highest level since Thursday and then collapsed amid a rally of the US dollar across the board. It bottomed so far at 0.6771, the lowest since November of last year. It remains near the lows, amid rising volatility.

It all changed in one minute

The US dollar was under pressure across the board amid lower US yields. Comments from Fed Chair Powell changed it all. The dollar jumped and is testing recent cycle highs versus it main rivals. It erased in a few minutes recent losses.

The NZD/USD tumbled and is testing the 0.6770 zone. A break lower should clear the way to more losses. The change in the direction of the dollar was abrupt and took place after Powell mentioned it is time to remove the word “transitory” from inflation. His comments boosted US yields from monthly lows and sent equity prices lower.

The combination of risk aversion and a rebound in yields favor the dollar. If the situation does not change, the rally of the dollar could continue. On the contrary, a recovery of NZD/USD back above 0.6800 could suggest a potential interim bottom.

Technical levels

 

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Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.

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