11 Feb 2015
NZD/USD: In narrow range post choppy price action
FXStreet (Guatemala) - NZD/USD is trading at 0.7402 with a high of 0.7407 and a low of 0.7394 in early Asia.
NZD/USD has otherwise been choppy between 0.7330 and capped at 0.7440 ahead of 0.7480 highs on last week's business. To the upside, bulls are recalling RBNZ's Governor recently giving the market the signal that rates are on hold for now and speculation there means rates will not be cut for the foreseeable future, giving the Kiwi the edge amongst those currencies, such as the Aussie and Lonnie, whose Central Bankers are taking emergency forward measures in a disinflationary global back drop.
However, the greenback remains in charge overall with a very strong US labour market report on Friday which is adding to the case for a US rate hike this year. Imre Speizer, analyst at Westpac Banking Corporation explained that over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible."
NZD/USD has otherwise been choppy between 0.7330 and capped at 0.7440 ahead of 0.7480 highs on last week's business. To the upside, bulls are recalling RBNZ's Governor recently giving the market the signal that rates are on hold for now and speculation there means rates will not be cut for the foreseeable future, giving the Kiwi the edge amongst those currencies, such as the Aussie and Lonnie, whose Central Bankers are taking emergency forward measures in a disinflationary global back drop.
However, the greenback remains in charge overall with a very strong US labour market report on Friday which is adding to the case for a US rate hike this year. Imre Speizer, analyst at Westpac Banking Corporation explained that over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible."