NZDUSD - Bearish BiasNZD - Strong Bearish
1️⃣ The expectation of an interest rate hike is already expected. Not surprising the market.
2️⃣ Coronavirus cases in New Zealand. The number of cases reported today was 39 cases compared to 34 the previous day.
3️⃣ Global market sentiment traded lower due to the uncertainty of the US debt limit. Risky market sentiment usually weighs on high-beta currencies such as NZD & AUD.
USD - Strong Bullish
1️⃣ The dollar strengthened amid concerns over slower growth and continued high inflation.
2️⃣ The Fed also hinted that an interest rate hike will be achieved sooner than previously expected.
3️⃣ Investors are paying attention to reports that Chinese real estate company Evergrande has delayed two bond interest payments in the last two weeks, with its offshore debt totaling around $ 20 billion.
4️⃣ Markets expect that the economy in the United States will add as many as 460K jobs in September, enough to force the Fed to start tapering before the end of the year.
5️⃣ The ISM Services PMI printed higher in September.
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Technical
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We are selling the NZDUSD after it breaks the support levels.
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Risk to this trade
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Any change in sentiment could turn the pair's direction.
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