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USDJPY Rises Back as Trade Talks Resumes
The US dollar has seen its sell-off stalled across the board as investors await new catalysts for the next directional move.
While bargain hunting and short covering have helped the greenback recoup some losses, the lack of fresh stimulus may offer more breathing room. Since markets won’t expect a new supply of cheap dollar soon, China-US trade talks will be the flash point as the two review their phase one deal. Any clash amid rising tensions may favor the dollar as a safer asset.
The pair is testing the major resistance of 107.40, and a bullish breakout may trigger an extended rally. 105.30 is the immediate support below.
EURNZD Extends Gains as New Zealand Under Lock-Down
The euro has gained traction against the kiwi as New Zealand grapples with a new strain of corona virus. Lock-down measures have been imposed in Auckland after the discovery of the first infection in over 100 days. Economic concerns would put the kiwi on the defensive.
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