2 May 2016
NZD/USD bulls staying the course for 0.70 handle
NZD/USD has started out the month on the front-foot within the reversal of 19th April's bearish trend.
NZD/USD is slightly bid at the open this week for a new month and continues to recover having found demand on the back of the RBNZ staying put and catching the market out yet again with a short squeeze from just above the 0.68 level and falling just shy of the 0.70 handle. However, as suggested by analysts at Westpac, "With the RBNZ likely to ease at least one more time, and the US dollar poised to rise later this year with Fed tightening, NZD/USD should eventually fall." New month, same bearish trend in USD - BBH==<==/a>
Moreover, we are still with a bearish trend in the greenback. "The Fed really doesn't like the dollar - and the desire to see higher inflation before raising rates any further, combined with the inability of central banks elsewhere to drive nominal or real yields lower, continues to undermine it," explained Kit Juckes, economist at Societe Generale, supporting the negative outlook in the greenback.
NZD/USD levels
The bird is starting the month off a fraction or so above the pivot at 0.6976. NZD/USD bulls are looking for a break on to the 0.70 handle on an approach to break the 19th of April's downtrend from 0.7044 in a continuation of the January bullish channel and recovery from 2016 lows at 0.6347. The 20 dma is located at 0.6893 and the 50 dma is a cent below at 0.6796.
NZD/USD is slightly bid at the open this week for a new month and continues to recover having found demand on the back of the RBNZ staying put and catching the market out yet again with a short squeeze from just above the 0.68 level and falling just shy of the 0.70 handle. However, as suggested by analysts at Westpac, "With the RBNZ likely to ease at least one more time, and the US dollar poised to rise later this year with Fed tightening, NZD/USD should eventually fall." New month, same bearish trend in USD - BBH==<==/a>
Moreover, we are still with a bearish trend in the greenback. "The Fed really doesn't like the dollar - and the desire to see higher inflation before raising rates any further, combined with the inability of central banks elsewhere to drive nominal or real yields lower, continues to undermine it," explained Kit Juckes, economist at Societe Generale, supporting the negative outlook in the greenback.
NZD/USD levels
The bird is starting the month off a fraction or so above the pivot at 0.6976. NZD/USD bulls are looking for a break on to the 0.70 handle on an approach to break the 19th of April's downtrend from 0.7044 in a continuation of the January bullish channel and recovery from 2016 lows at 0.6347. The 20 dma is located at 0.6893 and the 50 dma is a cent below at 0.6796.