20 Jul 2015
NZD/USD: Testing key resistance ahead of RBNZ this week
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6567 with a high of 0.6601and a low of 0.6504.
NZD/USD has been on the bid, going against the grain of late and is settled in to a sideways drift after a series of lower highs.
NZD/USD price action, minor recovery to test key resistance
NZD/USD met supply on the bounce at 0.6511 to 0.6600 down to 0.6562, a lower high at 0.6590, to a lower low of 0.6545 up to 0.6585 and drifting at 0.6564 currently. Technically, 0.6580/00 is acting as resistance and failures here bring back the bears target for 0.6420.
NZD/USD fundamentals, RBNZ in focus
We recently have seen heavy supply from last week's business on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7%. Yellen then added further pressures in her hawkish delivery, while China supported the bird to some degree on slightly improved data of late. However, this week brings the RBNZ back to the decision making table and markets are positioned for the probable outcome of a further cut to the OCR of 25bps to 3.0%. Assuming that a 25bp rate cut is delivered, as analysts at TD Securities explained, with weakness somewhat priced in as reflected in the recent CFTC report, the focus therefore will be on the accompanying statement to see to what extent the possibilities are for further easing at the next meeting on 10 September and thereafter.
NZD/USD has been on the bid, going against the grain of late and is settled in to a sideways drift after a series of lower highs.
NZD/USD price action, minor recovery to test key resistance
NZD/USD met supply on the bounce at 0.6511 to 0.6600 down to 0.6562, a lower high at 0.6590, to a lower low of 0.6545 up to 0.6585 and drifting at 0.6564 currently. Technically, 0.6580/00 is acting as resistance and failures here bring back the bears target for 0.6420.
NZD/USD fundamentals, RBNZ in focus
We recently have seen heavy supply from last week's business on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7%. Yellen then added further pressures in her hawkish delivery, while China supported the bird to some degree on slightly improved data of late. However, this week brings the RBNZ back to the decision making table and markets are positioned for the probable outcome of a further cut to the OCR of 25bps to 3.0%. Assuming that a 25bp rate cut is delivered, as analysts at TD Securities explained, with weakness somewhat priced in as reflected in the recent CFTC report, the focus therefore will be on the accompanying statement to see to what extent the possibilities are for further easing at the next meeting on 10 September and thereafter.