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7 Mar 2014
NZD/USD keeps challenging 4-month high altitudes
FXStreet (Bali) - NZD/USD continues to defy gravity by trading near its 4-month high of 0.85 reached during Thursday's trading.
The exchange rate posted a session high of 0.8488 just minutes ago after touching a low for the day at 0.8467 following RBA Stevens jawboning on the AUD. The market is playing heavy long bets ahead of next week’s RBNZ meeting, in which a rate hike is anticipated. It appears as though the risks heading into the meeting will be to the downside as the aggressive rise in the Kiwi suggests an immediate hike is fully priced in.
Technically, Jim Langlands, Founder at FXCharts, notes: "If the session high can be overcome, then look for a run on towards 0.8543 (October high), above which 0.8580 (30 Apr 2013 high) and then 0.8675 (11 Apr 2013 high). The downside now has support at 0.8430, and back below 0.8400 would see buyers at 0.8375 and 0.8345."
The exchange rate posted a session high of 0.8488 just minutes ago after touching a low for the day at 0.8467 following RBA Stevens jawboning on the AUD. The market is playing heavy long bets ahead of next week’s RBNZ meeting, in which a rate hike is anticipated. It appears as though the risks heading into the meeting will be to the downside as the aggressive rise in the Kiwi suggests an immediate hike is fully priced in.
Technically, Jim Langlands, Founder at FXCharts, notes: "If the session high can be overcome, then look for a run on towards 0.8543 (October high), above which 0.8580 (30 Apr 2013 high) and then 0.8675 (11 Apr 2013 high). The downside now has support at 0.8430, and back below 0.8400 would see buyers at 0.8375 and 0.8345."