14 Jul 2015
NZD/USD ahead of key data; Will it hold above 0.66?
FXStreet (Córdoba) - NZD/USD is rising modestly on Tuesday after hitting earlier the lowest level in six days at 0.6668. From the lows the pair bounced to the upside, climbed above 0.6700 and peaked at 0.6743. Currently is trading at 0.6710, around the same level it closed on Friday.
The pair is still moving with a bearish corrective bias as it keeps reaching lower highs and lower lows since last week; but movements are limited, in line with the rest of the market that is waiting probably for Yellen’s presentation and ECB decision.
Bearish outlook and data ahead
“We remain bearish on NZD/USD and target 0.6560 (2010 low) this week. The NZ economy continues to lose momentum, dairy prices remain vulnerable and RBNZ is likely to cut the OCR next week”, wrote analysts from Westpac Institutional Bank. According to them, the main obstacle to near term downside “is the record level of speculative shorts in the NZD/USD futures market”.
Regarding New Zealand, tomorrow there will be new data on dairy prices that could impact the kiwi. On Thursday it will be the turn of inflation numbers from the second quarter; CPI is expected to have risen 0.6% and 0.4% from a year ago. Also on Thursday, business confidence data will be release.
The pair is still moving with a bearish corrective bias as it keeps reaching lower highs and lower lows since last week; but movements are limited, in line with the rest of the market that is waiting probably for Yellen’s presentation and ECB decision.
Bearish outlook and data ahead
“We remain bearish on NZD/USD and target 0.6560 (2010 low) this week. The NZ economy continues to lose momentum, dairy prices remain vulnerable and RBNZ is likely to cut the OCR next week”, wrote analysts from Westpac Institutional Bank. According to them, the main obstacle to near term downside “is the record level of speculative shorts in the NZD/USD futures market”.
Regarding New Zealand, tomorrow there will be new data on dairy prices that could impact the kiwi. On Thursday it will be the turn of inflation numbers from the second quarter; CPI is expected to have risen 0.6% and 0.4% from a year ago. Also on Thursday, business confidence data will be release.