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27 Nov 2014
NZD/USD: Resilient to AUD headwinds as AUD/NZD supply assists
FXStreet (Bali) - NZD/USD continues to exhibit resilient dynamics, with the Kiwi returning from this week's low at 0.7770, rebounding until faced with sellers and resistance layered just ahead of 0.79, with current rate at 0.7873.
Jim Langlands, Founder at FXCharts, notes: "Momentum points higher in the short term, where the initial points to watch will be at 0.7900/10, a break of which would head towards last Friday’s China rat-cut inspired spike up to 0.7945. The downside will find initial support at 0.7850 (100 HMA) and then at 0.7820 and at 0.7800."
Earlier on the Asian session, we saw a weaker-than-expected NZ October trade data , although with the near term charts looking constructive, the initial modest dip was quickly bought up.
With USD currently performing quite poorly across the board, it is harder to hold shorts in NZDUSD given the carry trade factor, and at present, it just feels as if the market needs a fresh negative catalyst on the NZD, such as another negative dairy auction, RBNZ jawboning, downgrades on milk payout forecast for 2015 or a return of USD broad-based strength to take the particular pair down again. Moreover, AUD/NZD supply is keeping the NZD supported.
Jim Langlands, Founder at FXCharts, notes: "Momentum points higher in the short term, where the initial points to watch will be at 0.7900/10, a break of which would head towards last Friday’s China rat-cut inspired spike up to 0.7945. The downside will find initial support at 0.7850 (100 HMA) and then at 0.7820 and at 0.7800."
Earlier on the Asian session, we saw a weaker-than-expected NZ October trade data , although with the near term charts looking constructive, the initial modest dip was quickly bought up.
With USD currently performing quite poorly across the board, it is harder to hold shorts in NZDUSD given the carry trade factor, and at present, it just feels as if the market needs a fresh negative catalyst on the NZD, such as another negative dairy auction, RBNZ jawboning, downgrades on milk payout forecast for 2015 or a return of USD broad-based strength to take the particular pair down again. Moreover, AUD/NZD supply is keeping the NZD supported.