28 Oct 2013
NZD/USD mixed on events, 0.8280 holding in NA
FXstreet.com (London) - NZD/USD has printed a high of 0.8334 and a low of 0.8272 with markets sensitive around data from China and developments in the US along with the RBNZ coming up this week.
Flash HSBC Manufacturing PMI in China Oct rose to 50.9 (prior:50.2, mkt:50.4) with new orders at a seven-month high. “This indicator has weak predictive power in our view but is closely followed by the markets. Lee Hardman, Currency Analyst at the Bank of Tokyo-Mitsubishi UFJ said the US dollar has continued to weaken modestly in the Asian trading session with the dollar index remaining close to its lowest level of the year. “The US dollar remains under downward pressure in the near-term as investors are continuing to push back expectations for when the Fed will begin to taper QE further into 2014”. Meanwhile, research teams at Westpac Global Strategy Group explained 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 Levels
The 20 DMA is 0.8358, the 50 DMA is 0.8169 and the 200 DMA is 0.8184. RSI (14) reads 39.18. Supports are ascending from 0.8165, 0.8194, 0.8232, 0.8268, 0.8303, 0.8346, 0.8380, 0.8411 and 0.8446.
Flash HSBC Manufacturing PMI in China Oct rose to 50.9 (prior:50.2, mkt:50.4) with new orders at a seven-month high. “This indicator has weak predictive power in our view but is closely followed by the markets. Lee Hardman, Currency Analyst at the Bank of Tokyo-Mitsubishi UFJ said the US dollar has continued to weaken modestly in the Asian trading session with the dollar index remaining close to its lowest level of the year. “The US dollar remains under downward pressure in the near-term as investors are continuing to push back expectations for when the Fed will begin to taper QE further into 2014”. Meanwhile, research teams at Westpac Global Strategy Group explained 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 Levels
The 20 DMA is 0.8358, the 50 DMA is 0.8169 and the 200 DMA is 0.8184. RSI (14) reads 39.18. Supports are ascending from 0.8165, 0.8194, 0.8232, 0.8268, 0.8303, 0.8346, 0.8380, 0.8411 and 0.8446.