23 Oct 2013
NZD/USD cascading lower along with all Asia Pacific currencies on default concerns in China
FXstreet.com (Barcelona) - The NZD/USD was on a nice track higher early Wednesday until around 01:00 GMT when reports surfaced of China’s biggest banks tripling the amount of bad loans written off in the first half versus a year earlier.
NZD/USD having to react to Chinese credit concerns
Obviously, the news of credit concerns in China has the entire world on edge, sending money out of all risk assets – especially those in the Asia-Pacific region – and into safe harbor assets like the greenback and the Yen. This movement of assets has taken the NZD/USD from 0.8502 to 0.8398 over the last 3 1/2 hours.
During Wednesday’s session, NZD/USD traders will also be reacting to US Monthly Mortgage Apps, the US Export Price Index and the US Housing Price Index. Late Wednesday – actually during the first hours of Thursday’s session - New Zealand Trade Balance data will be released.
Technical outlook for NZD/USD
Technicians say the NZD/USD has thrown all previous analysis aside as a result of the China credit concerns. Previous support at 0.84366 is now first resistance. The next two support levels come into play at 0.8400 and 0.83500 – both horizontal lines of support.
NZD/USD having to react to Chinese credit concerns
Obviously, the news of credit concerns in China has the entire world on edge, sending money out of all risk assets – especially those in the Asia-Pacific region – and into safe harbor assets like the greenback and the Yen. This movement of assets has taken the NZD/USD from 0.8502 to 0.8398 over the last 3 1/2 hours.
During Wednesday’s session, NZD/USD traders will also be reacting to US Monthly Mortgage Apps, the US Export Price Index and the US Housing Price Index. Late Wednesday – actually during the first hours of Thursday’s session - New Zealand Trade Balance data will be released.
Technical outlook for NZD/USD
Technicians say the NZD/USD has thrown all previous analysis aside as a result of the China credit concerns. Previous support at 0.84366 is now first resistance. The next two support levels come into play at 0.8400 and 0.83500 – both horizontal lines of support.