Back
9 Sep 2013
NZD/USD moves on the upper level ahead a crucial week
FXstreet.com (Athens) - The NZD/USD pared a portion of its earlier gains party because the ‘kiwi’ is outperforming since Friday and partly due on profit taking.
Will the usual RBNZ bleating cacophony stop the NZD/USD uptrend momentum?
The NZD/USD took advantage of the super thin market liquidity and managed to climb above 0.8000 area, touching a high as of 0.8025 in New Zealand. Furthermore, it might also be the positive data regarding China’s trade balance on the weekend that bolstered the ‘kiwi’. Elaborating on, the “kiwi” lost some precious ground since the Asian’s trading opening which can be party attributed on “profit-taking” since it has outperformed since Friday, but also due to the fact that we are ahead a very crucial week regarding the NZD currency. Traders should be ideally focused on RBNZ Thursday’s statement, where a full set of forecasts is released. In addition the above, the RBNZ will probably continue to set up the cacophony bleating tone regarding the “overvalued” kiwi, but on the other hand this tone may be easily be undermined by likely bringing forward the projected tightening from +50bps in 2014H2 into H1.
Technical outlook on NZD/USD
Westpac Global Strategy Group suggests that “Kiwi should benefit from the recent slippage in Fed tapering expectations.NZD/USD remains consolidative, ranging between 0.77 and 0.82 during the past three months. The week ahead is busy with supportive NZ data so further upside is possible toward 0.82, though the RBNZ shouldn't be too hawkish.” At the time of writing, the pair is trading at 0.7990 area, down 0.13%. The FXstreet.com Trend Index shows the pair to be strongly bullish on a 15 minutes timeframe. Daily pivot point support can be found at 0.7941, 0.7922, 0.7902 and resistance at 0.8084, 0.8104 and 0.8124 respectively.
Will the usual RBNZ bleating cacophony stop the NZD/USD uptrend momentum?
The NZD/USD took advantage of the super thin market liquidity and managed to climb above 0.8000 area, touching a high as of 0.8025 in New Zealand. Furthermore, it might also be the positive data regarding China’s trade balance on the weekend that bolstered the ‘kiwi’. Elaborating on, the “kiwi” lost some precious ground since the Asian’s trading opening which can be party attributed on “profit-taking” since it has outperformed since Friday, but also due to the fact that we are ahead a very crucial week regarding the NZD currency. Traders should be ideally focused on RBNZ Thursday’s statement, where a full set of forecasts is released. In addition the above, the RBNZ will probably continue to set up the cacophony bleating tone regarding the “overvalued” kiwi, but on the other hand this tone may be easily be undermined by likely bringing forward the projected tightening from +50bps in 2014H2 into H1.
Technical outlook on NZD/USD
Westpac Global Strategy Group suggests that “Kiwi should benefit from the recent slippage in Fed tapering expectations.NZD/USD remains consolidative, ranging between 0.77 and 0.82 during the past three months. The week ahead is busy with supportive NZ data so further upside is possible toward 0.82, though the RBNZ shouldn't be too hawkish.” At the time of writing, the pair is trading at 0.7990 area, down 0.13%. The FXstreet.com Trend Index shows the pair to be strongly bullish on a 15 minutes timeframe. Daily pivot point support can be found at 0.7941, 0.7922, 0.7902 and resistance at 0.8084, 0.8104 and 0.8124 respectively.