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11 Mar 2014
NZD/USD quiet and awaits RBNZ
FXStreet (Guatemala) - NZD/USD has been trading in a very tight range of just 0.8481 the high and 0.8467 the low in Asia.
Following Friday’s free-fall, the bird has been attempting a recovery, but 0.8480 is proving tough with a lack of impetus in quieter markets in the begging sessions of this week. “In Thursday’s Monetary Policy Statement (MPS) the RBNZ will finally begin the journey back to more normal interest rate settings, after several years of economic underperformance, false starts and major setbacks”, explained Imre Speizer at Westpac Banking Corporation ABN. “With the RBNZ having stated in January that this adjustment process will begin "soon", market participants are now widely anticipating an increase in the Official Cash Rate (OCR) from 2.50% to 2.75%”. He went onto say that the more important message in the Statement will be around the pacing of future OCR moves once the tightening cycle is under way. “While the RBNZ’s projected path of interest rate hikes could still reasonably be described as ‘gradual’ compared to past tightening cycles, it won’t leave much room for dallying – consecutive hikes at some stage are a given, and in our view are more likely to occur up front”.
NZD/USD Levels
The 20 DMA is 0.8350, the 50 DMA is 0.8293 and the 200 DMA is 0.8147. RSI (14) reads 54.21. Supports are ascending from 0.8377, 0.8393, 0.8400 and 0.8432. Spot is 0.8470 while resistances are 0.8523, 0.8544, 0.8583 and 0.8587.
Following Friday’s free-fall, the bird has been attempting a recovery, but 0.8480 is proving tough with a lack of impetus in quieter markets in the begging sessions of this week. “In Thursday’s Monetary Policy Statement (MPS) the RBNZ will finally begin the journey back to more normal interest rate settings, after several years of economic underperformance, false starts and major setbacks”, explained Imre Speizer at Westpac Banking Corporation ABN. “With the RBNZ having stated in January that this adjustment process will begin "soon", market participants are now widely anticipating an increase in the Official Cash Rate (OCR) from 2.50% to 2.75%”. He went onto say that the more important message in the Statement will be around the pacing of future OCR moves once the tightening cycle is under way. “While the RBNZ’s projected path of interest rate hikes could still reasonably be described as ‘gradual’ compared to past tightening cycles, it won’t leave much room for dallying – consecutive hikes at some stage are a given, and in our view are more likely to occur up front”.
NZD/USD Levels
The 20 DMA is 0.8350, the 50 DMA is 0.8293 and the 200 DMA is 0.8147. RSI (14) reads 54.21. Supports are ascending from 0.8377, 0.8393, 0.8400 and 0.8432. Spot is 0.8470 while resistances are 0.8523, 0.8544, 0.8583 and 0.8587.