NZD/USD: The New Zealand dollar fell against the US dollar on Friday. The kiwi pair bears the burden of a strong US dollar amid the market’s rush to risk safety ahead of this week’s Federal Open Market Committee. Following strong inflation figures, a better-than-forecast Michigan Consumer Confidence Index from the US propelled the greenback versus most of its counterparts on Friday. NZD is also under pressure from the Group of Seven (G7) comments, which criticized China. The G7 promised to tackle China’s growing influence, fight climate change, get more COVID-19 vaccines to poorer countries and keep up their economic stimulus programs. Indecision over the Fed’s next moves, as well as the RBNZ’s refrain from providing clear signals, keep NZD/USD on the back foot. The strong support level can be seen at 0.7110. If the pair rebounds from this level, this impulse can take the pair towards 0.7190. If the pair breaks out below this level, it could trigger a further decline towards 0.7043.
BUY LIMIT 0.7125/SELL 0.7090/TP 0.7190
GBP/USD: The British pound fell against the US dollar on Friday after data on the UK’s recovery from the COVID-19 pandemic was slightly disappointing in April. UK GDP was up 27.6% from the record last year when the virus was rampant, but economic output remained 3.7 below its February 2020 levels and before the pandemic caused countries to enforce lockdown measures. US President Joe Biden refrained from taking a tough stand on Brexit, as widely anticipated. However, the European Union policymakers sought support from America to push the UK towards pre-agreed Brexit terms on Northern Ireland during the latest Group of Seven meetings. The nearest important macroeconomic statistics for the UK will be on Tuesday. We expect data on the Claimant Count Change, the Unemployment Rate, and data of the Average Earnings Including Bonus morning on Tuesday. The local support level is found at 1.4095. If the pair rebounds from this level, it could grow further, towards 1.4163.
GOLD: Gold prices fell on Friday under pressure from a stronger US dollar, with some investors betting that the rise in US consumer prices will be temporary and will not detract from the current Federal Reserve monetary stimulus. Gold has been extremely volatile recently. The local resistance is located at $1868.50. If the price returns to this level and rebounds it could be a trigger of growth towards $1852.