4 Sep 2013
NZD/USD on the upper level on a choppy trade
FXstreet.com (Athens) - The NZD/USD is heading upwards on Wednesday’s trading session, despite dismal New Zealand economic data released yesterday.
NZD/USD sitting on the fence ahead of Beige Book and NFP data
The NZD/USD is heading strongly upwards, despite the weaker than expected economic data that released yesterday, regarding the New Zealand’s economy. Traders might find paradoxical the uptrend movement of the pair, due to the fact that we are after very solid ISM US data and discouraging New Zealand’s data. But the truth usually lies behind the curtains; the fact that the RBA left the rates unchanged, may have a crucial impact on the pair. To elaborate on, according to BNZ Currency Research, “New Zealand’s relatively higher interest rates muddy the waters a little, however. Offshore real money has recently shown signs of a preference for NZ government bonds over those of Australia” and that “However, as the policy outlooks of the RBA and RBNZ have diverged, interest rates have become even more important than usual”. After today’s solid Australia GDP data, made more comprehensible the RBA’s less dovish stance, the ‘kiwi’ will might find a further support.
Technical Outlook on NZD/USD
At the time of writing, the pair is trading at 0.7833 area, up 0.41%, nearly its daily high as of 0.7841. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought, on a 15 minutes timeframe. Daily pivot point support can be found at 0.7733, 0.7713, 0.7694 and resistance at 0.7871, 0.7891 and 0.7910, respectively.
NZD/USD sitting on the fence ahead of Beige Book and NFP data
The NZD/USD is heading strongly upwards, despite the weaker than expected economic data that released yesterday, regarding the New Zealand’s economy. Traders might find paradoxical the uptrend movement of the pair, due to the fact that we are after very solid ISM US data and discouraging New Zealand’s data. But the truth usually lies behind the curtains; the fact that the RBA left the rates unchanged, may have a crucial impact on the pair. To elaborate on, according to BNZ Currency Research, “New Zealand’s relatively higher interest rates muddy the waters a little, however. Offshore real money has recently shown signs of a preference for NZ government bonds over those of Australia” and that “However, as the policy outlooks of the RBA and RBNZ have diverged, interest rates have become even more important than usual”. After today’s solid Australia GDP data, made more comprehensible the RBA’s less dovish stance, the ‘kiwi’ will might find a further support.
Technical Outlook on NZD/USD
At the time of writing, the pair is trading at 0.7833 area, up 0.41%, nearly its daily high as of 0.7841. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought, on a 15 minutes timeframe. Daily pivot point support can be found at 0.7733, 0.7713, 0.7694 and resistance at 0.7871, 0.7891 and 0.7910, respectively.