21 Jul 2014
NZD/USD filling offers above 0.87
FXStreet (Bali) - NZD/USD opened higher in Asia, currently at 0.8694 from a session high of 0.8710 and NY close of 0.8683.
The key event to watch out for is Thursday's RBNZ monetary policy decision, with the market expecting another 25bp rate hike. However, recent economic data out of New Zealand, has failed to meet expectations, with business confidence and CPIs both disappointing, something to bare in mind in the months ahead.
Going forward, the bullish picture in the NZ Dollar, especially NZD/JPY, does not look as compelling as it used to be, notes Sean Lee, Founder at FXWW.
Lee notes: "Industry research still suggests large inventories of milk powder in particular in China, coupled with geo-political tensions in Eastern Europe and the Middle East, should keep risk-sentiment nervous." Lee adds that with "NZD close to record highs on the TWI and market positioning long (albeit not at extreme levels), NZD/JPY looks technically interesting with a double-top on the daily charts around 89.60."
The key event to watch out for is Thursday's RBNZ monetary policy decision, with the market expecting another 25bp rate hike. However, recent economic data out of New Zealand, has failed to meet expectations, with business confidence and CPIs both disappointing, something to bare in mind in the months ahead.
Going forward, the bullish picture in the NZ Dollar, especially NZD/JPY, does not look as compelling as it used to be, notes Sean Lee, Founder at FXWW.
Lee notes: "Industry research still suggests large inventories of milk powder in particular in China, coupled with geo-political tensions in Eastern Europe and the Middle East, should keep risk-sentiment nervous." Lee adds that with "NZD close to record highs on the TWI and market positioning long (albeit not at extreme levels), NZD/JPY looks technically interesting with a double-top on the daily charts around 89.60."