10 Aug 2015
NZD/USD still challenging the bearish headwinds
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6610 with a high of 0.6623 and a low of 0.6602.
NZD/USD took back the 0.66 handle last week and managed to recoup the losses made since the open and start of August business prices. The jobs data from New Zealand was disappointing with the unemployment change for Q2 that came in line while the participation came in lower than expected at 69.3% vs 69.6% consensus. However, post an initial offer on the back of "O.K" Nonfarm Payrolls, the greenback reversed gains on profit taking and the bird was able to get back on the ascending support line on the week, reclaiming the bullish minor recovery.
However, the downside remains compelling given the divergence between the Fed and RBNZ and eyes will be monitoring the data between now and the Central Bank's next meetings in September and prior FOMC minutes that are next week. For this week.
For this week, we have NZ card sales and from the US Retails Sales, Producer Price's and in Michigan Sentiment stand out before next week's CPI's and Fed minutes to really drive the price direction in the greenback for August. "We expect this report to reinforce the Fed's prevailing bias for a September start to the normalization in rates and signal a shift in the monetary policy bias in a hawkish direction." - TD Securities.
NZD/USD still below shooting star and bearish gap
Recoveries still need to find 0.6780 with 0.6720/38 coming as first major resistance while the 28th of July shooting star highs remain a technical barrier. A score to 0.7080 will close the bearish gap of early June trade.
NZD/USD took back the 0.66 handle last week and managed to recoup the losses made since the open and start of August business prices. The jobs data from New Zealand was disappointing with the unemployment change for Q2 that came in line while the participation came in lower than expected at 69.3% vs 69.6% consensus. However, post an initial offer on the back of "O.K" Nonfarm Payrolls, the greenback reversed gains on profit taking and the bird was able to get back on the ascending support line on the week, reclaiming the bullish minor recovery.
However, the downside remains compelling given the divergence between the Fed and RBNZ and eyes will be monitoring the data between now and the Central Bank's next meetings in September and prior FOMC minutes that are next week. For this week.
For this week, we have NZ card sales and from the US Retails Sales, Producer Price's and in Michigan Sentiment stand out before next week's CPI's and Fed minutes to really drive the price direction in the greenback for August. "We expect this report to reinforce the Fed's prevailing bias for a September start to the normalization in rates and signal a shift in the monetary policy bias in a hawkish direction." - TD Securities.
NZD/USD still below shooting star and bearish gap
Recoveries still need to find 0.6780 with 0.6720/38 coming as first major resistance while the 28th of July shooting star highs remain a technical barrier. A score to 0.7080 will close the bearish gap of early June trade.