9 Dec 2014
NZD/USD: Sellers step in above 0.7670
FXStreet (Bali) - NZD/USD is trading under its previous year low from Nov 7 at 0.7670, currently at 0.7655, with sellers having stepped in on the latest USD corrective bounce in NA, with the main risk still being on further declines.
Today's main NZD driver in Asia should be the performance in the Aussie, which faces two key events at 00.30 GMT. Firstly, the NAB business confidence, and secondly and potentially providing greater volatility, will be the ABS’s “independent technical review into the Labour Force survey”, with Westpac's Sean Callow noting that while "it is not clear what this will produce, there is some chance yet more revisions will be revealed." Besides, it is important to be reminded that Fonterra's review on 2015 milk payouts to farmers may be announced anytime this week, likely to see significant downgrades, which may add further downward pressure to the New Zealand Dollar.
Technically, Jim Langlands, Founder at FXCharts, shares his take on the NZD/USD, saying that "medium term, it would appear that the downside may again come into focus ahead of Thursday’s RBNZ, where the Governor Wheeler will most likely talk the Kiwi down again. Support levels to watch are at 0.7620 and then at 0.7600. Having now broken below the 50% pivot of 0.6560/0.8842 at 0.7695 the kiwi could begin to accelerate towards the next major Fibo support at 0.7430 (61.8%), although unlikely before Thursday I suspect."
Today's main NZD driver in Asia should be the performance in the Aussie, which faces two key events at 00.30 GMT. Firstly, the NAB business confidence, and secondly and potentially providing greater volatility, will be the ABS’s “independent technical review into the Labour Force survey”, with Westpac's Sean Callow noting that while "it is not clear what this will produce, there is some chance yet more revisions will be revealed." Besides, it is important to be reminded that Fonterra's review on 2015 milk payouts to farmers may be announced anytime this week, likely to see significant downgrades, which may add further downward pressure to the New Zealand Dollar.
Technically, Jim Langlands, Founder at FXCharts, shares his take on the NZD/USD, saying that "medium term, it would appear that the downside may again come into focus ahead of Thursday’s RBNZ, where the Governor Wheeler will most likely talk the Kiwi down again. Support levels to watch are at 0.7620 and then at 0.7600. Having now broken below the 50% pivot of 0.6560/0.8842 at 0.7695 the kiwi could begin to accelerate towards the next major Fibo support at 0.7430 (61.8%), although unlikely before Thursday I suspect."