Back

The NZD/USD offered to the gap

FXstreet.com (London) - The NZD/USD reached a high of 0.8230 on a broad based dollar sell off, breaching into the 0.8200 handle but has moved lower on the session to close the gap.

With the pair remaining bid on the back of a hawkish stance from the RBNZ of late, research teams at Westpac said there are a couple of reasons at least for market participants to continue to expect opportunities. “A modest taper at the FOMC this week is fully priced, and given US data has been spotty lately, the risk is US interest rates (and in turn NZ rates) briefly correct lower. Investors could benefit tactically, while borrowers could benefit strategically by paying the dip”. Meanwhile, this week will hold a number of key events with Fed Interest Rate Decision to CPI’s for the US NZ Q2 GDP; and Aug net migration for NZD.

USD/NZD levels

The 20 DMA is .7915, the 50 DMA is .7931 and the 200 DMA is .8184. RSI (14) 42.53. Supports are ascending from .8074, .8095, .8125 and .8170. Spot is currently 0.8170 while resistances are coming in at .8198, .8256, .8273, .8302 and .8318.

Flash: More cautious on USD longs after Summers - Nomura

Following the Summers bombshell, one that is seen as a change for a less hawkish Fed in the future course of monetary policy, Jens Nordvig, FX Strategist at Nomura, notes this development makes them more cautious in terms of long USD exposure.
Read more Previous

Flash: No reason to fight the GBP/USD uptrend - ANZ

After the key breakout of 1.5750 last week, Brian Martin, FX Strategist at ANZ Research, notes the Sterling remains well supported and presently there is no definitive reason to fight the breakout.
Read more Next