28 Oct 2013
NZD/USD upwards as kiwi outperforms on dovish Fed bets
FXstreet.com (Athens) – The NZD/USD has been trading consistently upwards since the kick off of the Asian trading opening session, as market participants seem to have already priced in an ultra dovish FOMC meeting on Wednesday.
NZD/USD soars amidst risk on sentiment spurred by bets the tapering will be further delayed
The NZD/USD is climbing higher and higher in the early start of the European trading session, while New Zealand is observing Labor day. Furthermore, ahead of we will witness the release of September industrial production and September pending home sales, plus the October Dallas Fed manufacturing survey. While they are all second tier data, traders should not catch themselves off guard if the data releases influence to a major or less extent the American’s dollar trend. Regarding the kiwi, the RBNZ will probably might not be much hawkish on the Thursday’s meeting, as since the RBNZ introduced the loan to value mortgage restrictions, the weekly housing loans approvals dropped by more than 7%. All in all, the RBNZ will probably lead to the first rate hike in the March as of 2014, while most of market participants believe that Fed will also start tapering on March as of 2014.
Technical Perspective of NZD/USD
Westpac Global Strategy Group suggests that “A less hawkish RBNZ on Thursday will probably push market pricing for the first hike from March 2014 to April. The resultant fall in NZ interest rates should in turn push NZD/USD lower. Near term NZD momentum has already flipped to negative, so the downward correction risks extending to 0.8200. Beyond the week ahead, though, we remain constructive on the kiwi, given broad USD weakness and strong NZ fundamentals
NZD/USD soars amidst risk on sentiment spurred by bets the tapering will be further delayed
The NZD/USD is climbing higher and higher in the early start of the European trading session, while New Zealand is observing Labor day. Furthermore, ahead of we will witness the release of September industrial production and September pending home sales, plus the October Dallas Fed manufacturing survey. While they are all second tier data, traders should not catch themselves off guard if the data releases influence to a major or less extent the American’s dollar trend. Regarding the kiwi, the RBNZ will probably might not be much hawkish on the Thursday’s meeting, as since the RBNZ introduced the loan to value mortgage restrictions, the weekly housing loans approvals dropped by more than 7%. All in all, the RBNZ will probably lead to the first rate hike in the March as of 2014, while most of market participants believe that Fed will also start tapering on March as of 2014.
Technical Perspective of NZD/USD
Westpac Global Strategy Group suggests that “A less hawkish RBNZ on Thursday will probably push market pricing for the first hike from March 2014 to April. The resultant fall in NZ interest rates should in turn push NZD/USD lower. Near term NZD momentum has already flipped to negative, so the downward correction risks extending to 0.8200. Beyond the week ahead, though, we remain constructive on the kiwi, given broad USD weakness and strong NZ fundamentals