12 Dec 2013
NZD/USD under pressure
FXstreet.com (London) - NZD/USD slid from 0.8320 and has lost almost a full big figure reaching a low of 0.8229.
NZD/USD has been unwound in a broad based stringer dollar. The dollar was further supported in the market with Retail Sales beating expectations with 0.7% vs 0.6% although the run was limited on the jobless claims numbers disappointments. Meanwhile, tapering is still a topic of debate. Strategists at BBH said the case against tapering next week remains in place. “The fact that a third of participants (in a Bloomberg poll after the employment data) see a December start suggests that there is risk of a market reaction. The Fed's decision is not simply about the jobs market. Yes, it appears to have strengthened, but there is much noise around the trend. However, this is only one element of the policy making equation. Inflation is low and has not moved back toward the Fed's target as it anticipated. This does not make for a strong case for tapering. In addition, if tapering will be replaced by forward guidance, a key issue to making it credible is allowing the new Fed, who will be there to execute it, to actually provide the forward guidance”.
NZD/USD Levels
The 20 DMA is 0.8237, the 50 DMA is 0.8294 and the 200 DMA is 0.8165. RSI (14) reads 45.90. Supports are 0.8140, 0.8180, 0.8201. Spot is 0.8220 with resistances at 0.8229, 0.8273, 0.8313, 0.8336, 0.8368 and 0.8397.
NZD/USD has been unwound in a broad based stringer dollar. The dollar was further supported in the market with Retail Sales beating expectations with 0.7% vs 0.6% although the run was limited on the jobless claims numbers disappointments. Meanwhile, tapering is still a topic of debate. Strategists at BBH said the case against tapering next week remains in place. “The fact that a third of participants (in a Bloomberg poll after the employment data) see a December start suggests that there is risk of a market reaction. The Fed's decision is not simply about the jobs market. Yes, it appears to have strengthened, but there is much noise around the trend. However, this is only one element of the policy making equation. Inflation is low and has not moved back toward the Fed's target as it anticipated. This does not make for a strong case for tapering. In addition, if tapering will be replaced by forward guidance, a key issue to making it credible is allowing the new Fed, who will be there to execute it, to actually provide the forward guidance”.
NZD/USD Levels
The 20 DMA is 0.8237, the 50 DMA is 0.8294 and the 200 DMA is 0.8165. RSI (14) reads 45.90. Supports are 0.8140, 0.8180, 0.8201. Spot is 0.8220 with resistances at 0.8229, 0.8273, 0.8313, 0.8336, 0.8368 and 0.8397.