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26 Apr 2016
NZD/USD: awaits RBNZ while trying to catch a bid
NZD/USD awaits the RBNZ and FOMC this week and is not giving much of a show as we progress through the start of the week so far.
NZD/USD has been moving with a 30 pip range overnight in the U.S. shift. The bird was better offered for the best part of the shift in the upper half of the 0.68 handle. In respect of the RBNZ this week, the recent NZ economic data has been better than expected in both the housing market and CPIs and has weakened the case for an April (vs June) OCR cut. Meanwhile we will monitor the U.S. calendar ahead if the FOMC.
A data packed week ahead in the U.S. - UOB
NZD/USD levels
NZD/USD's support gave out recently below 0.6950 and that had put the ascending channel has been compromised. The break of the 20 dma last week at 0.6881 opens the way to 7th April lows at 0.6768 and the 50 dm at 0.6772. However, bulls are trying to catch a bid with a positive close yesterday and sideways overnight.
To the upside, the channel holds 0.6900 as a psychological target that if breached, would buy some time for the bulls in a continuation of the 19th Jan rally and major reversal that recently broke the key resistance of the double top earlier in the year at 0.6895.
NZD/USD has been moving with a 30 pip range overnight in the U.S. shift. The bird was better offered for the best part of the shift in the upper half of the 0.68 handle. In respect of the RBNZ this week, the recent NZ economic data has been better than expected in both the housing market and CPIs and has weakened the case for an April (vs June) OCR cut. Meanwhile we will monitor the U.S. calendar ahead if the FOMC.
A data packed week ahead in the U.S. - UOB
NZD/USD levels
NZD/USD's support gave out recently below 0.6950 and that had put the ascending channel has been compromised. The break of the 20 dma last week at 0.6881 opens the way to 7th April lows at 0.6768 and the 50 dm at 0.6772. However, bulls are trying to catch a bid with a positive close yesterday and sideways overnight.
To the upside, the channel holds 0.6900 as a psychological target that if breached, would buy some time for the bulls in a continuation of the 19th Jan rally and major reversal that recently broke the key resistance of the double top earlier in the year at 0.6895.