16 Oct 2013
NZD/USD caught in choppy trading
FXstreet.com (Athens) – The NZD/USD has been trading upwards the last couple of hours – despite its sharp downtrend shift in the kick off of the Asian trading session – amidst solid New Zealand data pertaining to inflation but also amidst the continuing discussions in Washington.
NZD/USD upwards in choppy trading; “kiwi” lifts on data but Washington still put riddles
The NZD/USD was initially trading on the down side in the early Asian opening trading session, as Washington puzzles market participants all over the globe due to the fact that while a decision is close enough most of the times then something happens and the resolution is fading away. All in all, the “kiwi” got a solid boost on the fact that the CPI rose 1.4% on the year, i.e. the inflation came back within the desired range on behalf of RBNZ (1% - 3%). Last but not least, traders should bear into consideration that that despite that inflation is tracking on the upper level returning to the desired range of 1% - 3% for the first time since the June’s quarter as of 2012, RBNZ will not probably hike soon the rates as till now the New Zealand Central Bank uses efficiently the macro prudential tools in order to delay the “tightening” till 2014.
Technical Analysis on NZD/USD
Traders should be aware of the fact that the “kiwi” is highly correlated again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. At the time of writing the pair is trading at 0.8390, up 0.20%. Ahead, the area as of 0.8402 remains the initial topside resistance, with the support being held at the 19th September’s low of 0.8327. Our personal aspect of view is that the “kiwi” will manage finally to retest its highs as of 0.8445, but to achieve this it should firstly overcome the psychological barrier as of 0.8400 (also the upper 21-day Bollinger Band), but mostly the 76.4% Fibonacci retracement as of 0.8676 – 0.7676 area. Finally it is noteworthy to mention that the cross spikek upwards roughly 30 pips on CPI released data.
NZD/USD upwards in choppy trading; “kiwi” lifts on data but Washington still put riddles
The NZD/USD was initially trading on the down side in the early Asian opening trading session, as Washington puzzles market participants all over the globe due to the fact that while a decision is close enough most of the times then something happens and the resolution is fading away. All in all, the “kiwi” got a solid boost on the fact that the CPI rose 1.4% on the year, i.e. the inflation came back within the desired range on behalf of RBNZ (1% - 3%). Last but not least, traders should bear into consideration that that despite that inflation is tracking on the upper level returning to the desired range of 1% - 3% for the first time since the June’s quarter as of 2012, RBNZ will not probably hike soon the rates as till now the New Zealand Central Bank uses efficiently the macro prudential tools in order to delay the “tightening” till 2014.
Technical Analysis on NZD/USD
Traders should be aware of the fact that the “kiwi” is highly correlated again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. At the time of writing the pair is trading at 0.8390, up 0.20%. Ahead, the area as of 0.8402 remains the initial topside resistance, with the support being held at the 19th September’s low of 0.8327. Our personal aspect of view is that the “kiwi” will manage finally to retest its highs as of 0.8445, but to achieve this it should firstly overcome the psychological barrier as of 0.8400 (also the upper 21-day Bollinger Band), but mostly the 76.4% Fibonacci retracement as of 0.8676 – 0.7676 area. Finally it is noteworthy to mention that the cross spikek upwards roughly 30 pips on CPI released data.