26 Jun 2014
NZD/USD: Bullish engulfing day as carry trades benefit
FXStreet (Bali) - With high-yielders being bid to the boots post the horrendous US Q1 GDP reading, which came much worse-than-expected, the NZD/USD ended Wednesday printing a sizeable bullish engulfing bar on the daily, suggestive of further upside risks.
According to Jim Langlands, Founder at FXCharts: "With the market guessing that the Fed are going to sit on its hands for a prolonged period, following today’s US data, and with the RBNZ looking likely to raise rates on July 24, the Kiwi has been the big winner, trading up to a high of 0.8740."
The next risk event for the Kiwi comes on Friday, when the NZ trade balance will be published. If the number comes strong, Jim suspects that "the Kiwi may take out the 23 June 0.8747 high and head up towards 6 May high at 0.8778." At present, any setbacks see "0.8700 (200 HMA) as the initial support ahead of 0.8661", Jim adds.
According to Jim Langlands, Founder at FXCharts: "With the market guessing that the Fed are going to sit on its hands for a prolonged period, following today’s US data, and with the RBNZ looking likely to raise rates on July 24, the Kiwi has been the big winner, trading up to a high of 0.8740."
The next risk event for the Kiwi comes on Friday, when the NZ trade balance will be published. If the number comes strong, Jim suspects that "the Kiwi may take out the 23 June 0.8747 high and head up towards 6 May high at 0.8778." At present, any setbacks see "0.8700 (200 HMA) as the initial support ahead of 0.8661", Jim adds.