24 Jul 2013
NZD/USD recovering but bearish
FXstreet.com (London) - NZD/USD has been a mixed bag of data over night, while focus remains on RBNZ.
Trade Balance (MoM) (Jun) surprised overnight markets by printing $414 vrs a consensus of -$100m and only $39m previous. But after the NZD rallied, it fell to Chinas woes once again and had continued to slide in the opening hours of the European session. The pair has had a little bounce from 0.7937 the low to trade 20 pips higher. The RBNZ meets at 21:00GMT and expectations are that the rate will be left unchanged at 2.5%.“The Bank is in a position to highlight last week’s soft inflation report as an offset to the upswing in house prices, credit and construction. The balance of risks favours lifting the cash rate sooner, but the RBNZ remains determined to experiment with macroprudential tools first” said research teams at TD Securitise and they continued. “As such we expect Governor Wheeler to repeat that the Bank expects “to keep the OCR unchanged through the end of the year”. We continue to pencil in March 2014 as the timing for the first tightening”.
NZD/USD Levels
Danske Bank Technical Update gives us the 20d ma at 0.7837, 50d ma at 0.7938, and the 200 d ma at 0.8232 with RSI (9) 67.60 and Support coming in at 0.7840, 0.7881, 0.7891, 0.7900 and spot at time of writing 0.7951. Resistances are 0.8014, 0.8030, 0.8053 and 0.8062.
Trade Balance (MoM) (Jun) surprised overnight markets by printing $414 vrs a consensus of -$100m and only $39m previous. But after the NZD rallied, it fell to Chinas woes once again and had continued to slide in the opening hours of the European session. The pair has had a little bounce from 0.7937 the low to trade 20 pips higher. The RBNZ meets at 21:00GMT and expectations are that the rate will be left unchanged at 2.5%.“The Bank is in a position to highlight last week’s soft inflation report as an offset to the upswing in house prices, credit and construction. The balance of risks favours lifting the cash rate sooner, but the RBNZ remains determined to experiment with macroprudential tools first” said research teams at TD Securitise and they continued. “As such we expect Governor Wheeler to repeat that the Bank expects “to keep the OCR unchanged through the end of the year”. We continue to pencil in March 2014 as the timing for the first tightening”.
NZD/USD Levels
Danske Bank Technical Update gives us the 20d ma at 0.7837, 50d ma at 0.7938, and the 200 d ma at 0.8232 with RSI (9) 67.60 and Support coming in at 0.7840, 0.7881, 0.7891, 0.7900 and spot at time of writing 0.7951. Resistances are 0.8014, 0.8030, 0.8053 and 0.8062.