8 Dec 2014
NZD/USD: A whisker away from making new year lows
FXStreet (Bali) - NZD/USD is trading under pressure ahead of Tokyo, currently exchanging hands at 0.7689 after printing its lowest at 0.7674, with broad-based USD strength on the back of a very strong US NFP, still the dominant theme.
Jim Langlands, Founder at FXCharts, notes that the major event for NZD traders this week will be the RBNZ interest rate decision and press conference: "While rates are expected to be unchanged, the statement is likely to be dovish, and the the Governor, Wheeler will probably take another swipe at the level of the Kiwi in an attempt to send it lower still." It is also worth noting that Fonterra is due to announce a revision to its 2015 milk payout forecast, with a downgrade almost certain.
After the early Asian break of 0.7700, Jim notes that NZD/USD "would find support initially at the trend low at 0.7660 (7 Nov), with further minor support seen at 0.7635 and then at 0.7600", while on the topside, "selling rallies into resistance remains the game plan, where sellers will gather at around 0.77, 0.7735 and 0.7750", Jim adds.
Jim Langlands, Founder at FXCharts, notes that the major event for NZD traders this week will be the RBNZ interest rate decision and press conference: "While rates are expected to be unchanged, the statement is likely to be dovish, and the the Governor, Wheeler will probably take another swipe at the level of the Kiwi in an attempt to send it lower still." It is also worth noting that Fonterra is due to announce a revision to its 2015 milk payout forecast, with a downgrade almost certain.
After the early Asian break of 0.7700, Jim notes that NZD/USD "would find support initially at the trend low at 0.7660 (7 Nov), with further minor support seen at 0.7635 and then at 0.7600", while on the topside, "selling rallies into resistance remains the game plan, where sellers will gather at around 0.77, 0.7735 and 0.7750", Jim adds.