20 Jan 2015
NZD/USD dropps to test 0.7620 support
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7630 with a high of 0.7681 and a low of 0.7622 and is down 0.57% on the day.
NZD/USD has dropped on the back of the CPI results. These came in below the consensus for 4Q, with the actual printing -0.2% vs 0% expected, while the YoY read came in at 0.8% vs 0.9% expected and this will be placing investors bets away for a rate rise anytime soon from the RBNZ. Rate rises have been called for by some analysts for as early as the final quarter of 2015, as the economy remains strong with a bubbling housing market.
Technically NZD/USD, analysts at Westpac Banking Corporation ABN see ongoing risks towards 0.76 here. "Over the medium term, there remains potential for NZD/USD to fall to 0.7500 during the first quarter of 2015. Dairy commodities remain in a downtrend, and the US dollar’s powerful uptrend remains intact (notwithstanding its stretched condition near term). Moreover, Q4 inflation is expected to slip below the bottom of the RBNZ’s 1%-3% target band, encouraging the amrket to start pricing in RBNZ rate cuts."
NZD/USD has dropped on the back of the CPI results. These came in below the consensus for 4Q, with the actual printing -0.2% vs 0% expected, while the YoY read came in at 0.8% vs 0.9% expected and this will be placing investors bets away for a rate rise anytime soon from the RBNZ. Rate rises have been called for by some analysts for as early as the final quarter of 2015, as the economy remains strong with a bubbling housing market.
Technically NZD/USD, analysts at Westpac Banking Corporation ABN see ongoing risks towards 0.76 here. "Over the medium term, there remains potential for NZD/USD to fall to 0.7500 during the first quarter of 2015. Dairy commodities remain in a downtrend, and the US dollar’s powerful uptrend remains intact (notwithstanding its stretched condition near term). Moreover, Q4 inflation is expected to slip below the bottom of the RBNZ’s 1%-3% target band, encouraging the amrket to start pricing in RBNZ rate cuts."