27 Aug 2015
NZD/USD on a minor recovery vs strong headwinds
FXStreet (Guatemala) - NZD/USD is currently trading at support after a day of supply over night in the US session and making a minor recovery off the lows from a hand-full of pips away from 0.6400.
The greenback was supported throughout the session while some very strong and key Durable Good's numbers appealed to investors while Dudley clinched the stock market deal but was suggesting September is off the cards, or "less compelling," offering a longer period of ultra low rates to fuel consumers appetite and companies liquidity.
NZD/USD hit hard
The Kiwi and other commodity currencies were hit the hardest until some relief eventually came at the end of the trading day and risk appetite transpired back in to riskier asset classes and subsequent currencies. There is little to come from the New Zealand economy data wise for some time, while markets await the next RBNZ meeting and a rate cut is being priced in, and perhaps as much as 50 basis points to the OCR could be argued as an appropriate measure over the course of the rest of the year, considering the headwinds from China. The GDT prices will be closely monitored next week as well as business conditions and of course the RBA interest rate decision and statement as a reference leading up to the RBNZ later in the month.
NZD/USD factors to fade over time?
Technically, the price is pressured brow the longer time sticks with the 200 DMA on the daily chart way up at 0.7297 with the price within a heavily bearish defending channel from 0.7738. However, it is not all doom and gloom for some economists on NZ economy, “On a 6-12M horizon we expect negative factors for NZD/USD to fade, and with upside risks to agricultural prices from a structural point of view, we expect NZD/USD to stabilise around the 0.70 mark, our long-held 12M forecast”, explained Senior Analyst at Danske Bank Christin Tuxen.
The greenback was supported throughout the session while some very strong and key Durable Good's numbers appealed to investors while Dudley clinched the stock market deal but was suggesting September is off the cards, or "less compelling," offering a longer period of ultra low rates to fuel consumers appetite and companies liquidity.
NZD/USD hit hard
The Kiwi and other commodity currencies were hit the hardest until some relief eventually came at the end of the trading day and risk appetite transpired back in to riskier asset classes and subsequent currencies. There is little to come from the New Zealand economy data wise for some time, while markets await the next RBNZ meeting and a rate cut is being priced in, and perhaps as much as 50 basis points to the OCR could be argued as an appropriate measure over the course of the rest of the year, considering the headwinds from China. The GDT prices will be closely monitored next week as well as business conditions and of course the RBA interest rate decision and statement as a reference leading up to the RBNZ later in the month.
NZD/USD factors to fade over time?
Technically, the price is pressured brow the longer time sticks with the 200 DMA on the daily chart way up at 0.7297 with the price within a heavily bearish defending channel from 0.7738. However, it is not all doom and gloom for some economists on NZ economy, “On a 6-12M horizon we expect negative factors for NZD/USD to fade, and with upside risks to agricultural prices from a structural point of view, we expect NZD/USD to stabilise around the 0.70 mark, our long-held 12M forecast”, explained Senior Analyst at Danske Bank Christin Tuxen.