The post Extends rally to near 0.6300 as China unveils massive stimulus appeared on BitcoinEthereumNews.com.

NZD/USD surges to near 0.6300 as China announces a slew of monetary stimulus. The Fed is expected to opt a 50-bps interest rate cut in November. Investors await the US core PCE inflation data for August. The NZD/USD pair rallies to near the key resistance of 0.6300 in Tuesday’s North American session. The Kiwi asset strengthens on the firm New Zealand Dollar (NZD), which is enjoying higher inflows after the announcement of China’s massive stimulus, with the aim to revive the economic prospects, uplifting household spending and real estate demand. It is worth noting that New Zealand (NZ) is one of the leading trading partners of China, and the announcement of fresh stimulus will prompt Kiwi exports. Meanwhile, the US Dollar (USD) remains under pressure amid growing discussions that the Federal Reserve (Fed) extend the policy-easing cycle aggressively. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls to near 100.75. Going forward, investors will focus on commentaries from Fed officials and the United States (US) Personal Consumption Expenditure Price Index (PCE) for August, which will be published on Friday. The core PCE inflation is the Fed’s preferred inflation gauge, which is estimated to have grown at a faster pace of 2.7% from 2.6% in July. NZD/USD extends its winning spell for the fifth trading day on Tuesday. The Kiwi asset approaches the annual high of 0.6400 formed on 26 December 2023. Upward-sloping 20-day Exponential Moving Average (EMA) near 0.6200 suggests that the near-term outlook is upbeat. The 14-day Relative Strength Index (RSI) strives to sustain above 60.00. A bullish momentum would trigger if the oscillator manages to do so. Further upside above the Year-To-Date (YTD) high of 0.6330 would drive the asset towards December 26 high of 0.6400, followed by 25 January 2023 low…

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Filed under: News - @ September 24, 2024 2:25 pm