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27 May 2014
NZD/USD pressures mounting
FXStreet (Guatemala) - NZD/USD is trading at 0.8548, up 0.01% on the day, having posted a daily high at 0.8561 and low at 0.8539.
Expectations the RBNZ will signal a pause in June should continue to weigh on NZD/USD this week, explained Imre Speizer, strategist at Westpac Banking Corporation ABN “NZD/USD is heading towards a test of the lower boundary of a two-month old broadening range at 0.8525. "Markets expect the RBNZ to downgrade its OCR track and we expect that sentiment to endure at least until the 12 June MPS meeting. A break below 0.8525 would signal a further fall to the 0.8300-0.8400 area. Much longer term, increasing interest rate carry should support NZD/USD and a rebound back into the 0.86-0.87 area is expected”. He added that the US factors appear consistent with the above: near term the US dollar remains poised for more gains. Meanwhile and on the calendar, on Wednesday we will see the ANZ Activity and Business Surveys while Thursday markets are expecting a flat print for building permits after the +8.3% pop in March.
NZD/USD Levels
Spot is presently trading at 0.8550, and next resistance can be seen at 0.8550 (Daily Classic PP), 0.8559 (Hourly 100 SMA), 0.8559 (Yesterday's High), 0.8561 (Daily High) and 0.8571 (Daily Classic R1). Support below can be found at 0.8550 (Daily Open), 0.8549 (Hourly 20 EMA), 0.8546 (Weekly Low), 0.8539 (Daily Low) and 0.8539 (Monthly Low).
Expectations the RBNZ will signal a pause in June should continue to weigh on NZD/USD this week, explained Imre Speizer, strategist at Westpac Banking Corporation ABN “NZD/USD is heading towards a test of the lower boundary of a two-month old broadening range at 0.8525. "Markets expect the RBNZ to downgrade its OCR track and we expect that sentiment to endure at least until the 12 June MPS meeting. A break below 0.8525 would signal a further fall to the 0.8300-0.8400 area. Much longer term, increasing interest rate carry should support NZD/USD and a rebound back into the 0.86-0.87 area is expected”. He added that the US factors appear consistent with the above: near term the US dollar remains poised for more gains. Meanwhile and on the calendar, on Wednesday we will see the ANZ Activity and Business Surveys while Thursday markets are expecting a flat print for building permits after the +8.3% pop in March.
NZD/USD Levels
Spot is presently trading at 0.8550, and next resistance can be seen at 0.8550 (Daily Classic PP), 0.8559 (Hourly 100 SMA), 0.8559 (Yesterday's High), 0.8561 (Daily High) and 0.8571 (Daily Classic R1). Support below can be found at 0.8550 (Daily Open), 0.8549 (Hourly 20 EMA), 0.8546 (Weekly Low), 0.8539 (Daily Low) and 0.8539 (Monthly Low).