16 Jan 2015
Yield search supports NZD/USD
FXStreet (Mumbai) - The NZD/USD pair remains well supported as investors in search of attractive yields post Swiss National Bank’s (SNB) decision, prefer to hold a relatively high yielding currencies like NZD and AUD.
The pair currently trades at 0.7635 levels, largely unchanged from the previous session’s close at 0.7738 levels. The Kiwi was one of the best performers yesterday, after it rose to a one-month high against the USD post SNB surprised markets by pushing interest rates further into the negative territory at -0.75%. Moreover, the SNB’s decision pushed the yields across Europe, US and most of Asia to new lows. Thus, investors shifted their attention to the relatively high yielding NZD and AUD.
The yield play still remains in place as the Treasury yields in the US and bond yield in the Eurozone are expected to fall further ahead of next week’s European Central Bank meet. Thus, the NZD/USD pair has been able to sustain gains above the 100-DMA located at 0.7813 levels.
NZD/USD Technical Levels
The immediate resistance is seen at 0.7862 (Jan. 11 high), above which gains could be extended to 0.7888 levels. Meanwhile, support is seen at 0.7813 (100-DMA) and 0.7788 (10-DMA) levels.
The pair currently trades at 0.7635 levels, largely unchanged from the previous session’s close at 0.7738 levels. The Kiwi was one of the best performers yesterday, after it rose to a one-month high against the USD post SNB surprised markets by pushing interest rates further into the negative territory at -0.75%. Moreover, the SNB’s decision pushed the yields across Europe, US and most of Asia to new lows. Thus, investors shifted their attention to the relatively high yielding NZD and AUD.
The yield play still remains in place as the Treasury yields in the US and bond yield in the Eurozone are expected to fall further ahead of next week’s European Central Bank meet. Thus, the NZD/USD pair has been able to sustain gains above the 100-DMA located at 0.7813 levels.
NZD/USD Technical Levels
The immediate resistance is seen at 0.7862 (Jan. 11 high), above which gains could be extended to 0.7888 levels. Meanwhile, support is seen at 0.7813 (100-DMA) and 0.7788 (10-DMA) levels.