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16 Sep 2013
USD/NZD looking toppy; highs 0.8230
FXstreet.com (London) - The NZD/USD reached a high of 0.8230 on a broad based dollar sell off, breaching into the 0.8200 handle but has since ducked into 0.8180 territory again.
The Hawk, Larry Summers’, withdrawal from being considered as the next Fed Chairman and the possibility that the Dove, Janet Yellen, may be the person for the job has lead to the dollar dropping significantly towards significant levels in dollar crosses. Markets are expecting a longer term in current accommodative policies. Meanwhile, this week will hold a number of key events with Fed Interest Rate Decision to CPI’s for the US. NZ sees Q2 GDP and Aug net migration.
NZD and RBNZ risk
With the pair remaining bid on the back of a hawkish stance from the RBNZ of late, research teams at Westpac said there are a couple of reasons at least for market participants to continue to expect opportunities. “A modest taper at the FOMC this week is fully priced, and given US data has been spotty lately, the risk is US interest rates (and in turn NZ rates) briefly correct lower. Investors could benefit tactically, while borrowers could benefit strategically by paying the dip”.
USD/NZD levels
The 20 DMA is .7915, the 50 DMA is .7931 and the 200 DMA is .8184. RSI (14) 51.45. Supports are ascending from .8074, .8095, .8125 and .8170. Spot is currently 0.8188 while resistances are coming in at .8198, .8256, .8273, .8302 and .8318.
The Hawk, Larry Summers’, withdrawal from being considered as the next Fed Chairman and the possibility that the Dove, Janet Yellen, may be the person for the job has lead to the dollar dropping significantly towards significant levels in dollar crosses. Markets are expecting a longer term in current accommodative policies. Meanwhile, this week will hold a number of key events with Fed Interest Rate Decision to CPI’s for the US. NZ sees Q2 GDP and Aug net migration.
NZD and RBNZ risk
With the pair remaining bid on the back of a hawkish stance from the RBNZ of late, research teams at Westpac said there are a couple of reasons at least for market participants to continue to expect opportunities. “A modest taper at the FOMC this week is fully priced, and given US data has been spotty lately, the risk is US interest rates (and in turn NZ rates) briefly correct lower. Investors could benefit tactically, while borrowers could benefit strategically by paying the dip”.
USD/NZD levels
The 20 DMA is .7915, the 50 DMA is .7931 and the 200 DMA is .8184. RSI (14) 51.45. Supports are ascending from .8074, .8095, .8125 and .8170. Spot is currently 0.8188 while resistances are coming in at .8198, .8256, .8273, .8302 and .8318.