3 Oct 2013
NZD/USD at a tight range on profit-taking
FXstreet.com (Athens) – The NZD/USD is trading slightly upwards the past half an hour but generally hovering at a very tight range, mostly due to the fact that traders took their profits after “kiwi’s” yesterday’s outperformance.
NZD/USD is trading down 0.22% since Asian opening; main reason profit-taking
The NZD/USD is moving at a very congested area since the kick off of the Asian trading session, as despite risk-appetite strikes back, the “kiwi” is underperforming today. The major key-driver for that trend behavior is that the New Zealand Dollar (in combination with the Japanese currency), enjoyed a great rally on Wednesday and obviously, investors took to a smaller or larger extent their profits, dragging the cross on the downwards side. Furthermore, today RBNZ boosted the rumors that the Central Bank is going to hike rates in the near future as RBNZ Governor Wheeler warned that “rates may increase by 2% from 2014 to early 2016.” Elaborating on, Wheeler said to the wires that "We currently expect that the official cash rate could increase by 2 percent from 2014 to the beginning of 2016. This could result in interest rates on first mortgages of 7-8 percent. If the loan-to-value speed limit is unable to slow house price inflation, larger increases in the official cash rate would be required.”
Technical Outlook on the NZD/USD
At the time of writing the cross is trading at 0.8330, up 0.03%. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445
NZD/USD is trading down 0.22% since Asian opening; main reason profit-taking
The NZD/USD is moving at a very congested area since the kick off of the Asian trading session, as despite risk-appetite strikes back, the “kiwi” is underperforming today. The major key-driver for that trend behavior is that the New Zealand Dollar (in combination with the Japanese currency), enjoyed a great rally on Wednesday and obviously, investors took to a smaller or larger extent their profits, dragging the cross on the downwards side. Furthermore, today RBNZ boosted the rumors that the Central Bank is going to hike rates in the near future as RBNZ Governor Wheeler warned that “rates may increase by 2% from 2014 to early 2016.” Elaborating on, Wheeler said to the wires that "We currently expect that the official cash rate could increase by 2 percent from 2014 to the beginning of 2016. This could result in interest rates on first mortgages of 7-8 percent. If the loan-to-value speed limit is unable to slow house price inflation, larger increases in the official cash rate would be required.”
Technical Outlook on the NZD/USD
At the time of writing the cross is trading at 0.8330, up 0.03%. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445