30 Oct 2013
NZD/USD continuing south?
FXstreet.com (London) - NZD/USD has moved lower from above 0.8280 to print a low of 0.8212 but appears to be attracting some demand and support currently.
Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities noted that the initial move was due to a headline “Moody’s Discussed Stripping New Zealand of its Last AAA Rating” saw the NZD sink from $US0.8260 to a low of $US0.8213. They explained, thanks to more balanced reporting from other newswires, the reaction was short-lived as Moody remains comfortable with New Zealand’s AAA rating. Meanwhile, the Fed will remain squarely in the market’s sights, explained Cristian Maggio. ”The one-week delay in the release of the October nonfarm payrolls report to November 8th should give ADP another month in the spotlight as the market continues to assess the impact of the shutdown on economic activity. We expect a lackluster 150K rise in ADP following last month’s 166K increase, though the bias is tilted to the downside given the potential for a greater than anticipated impact from the government shutdown. While the market could come away disappointed if the print comes in below expectations, we suspect that a below-consensus print may be partly discounted by the market as being transitory. The delayed September CPI report will also be closely watched, though with both the headline and core indices set to rise 0.2% m/m and pipeline inflation pressures remaining low, we believe the inflation print may do little to move markets”.
NZD/USD Levels
The 20 DMA is 0.8357, the 50 DMA is 0.8179 and the 200 DMA is 0.8182. RSI (14) reads 49.19. Supports are ascending from 0.8130, 0.8165, 0.8194, 0.8210, 0.8230. Spot is currently 0.8256 while resistances are 0.8274, 0.8303, 0.8332 and 0.8359
Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities noted that the initial move was due to a headline “Moody’s Discussed Stripping New Zealand of its Last AAA Rating” saw the NZD sink from $US0.8260 to a low of $US0.8213. They explained, thanks to more balanced reporting from other newswires, the reaction was short-lived as Moody remains comfortable with New Zealand’s AAA rating. Meanwhile, the Fed will remain squarely in the market’s sights, explained Cristian Maggio. ”The one-week delay in the release of the October nonfarm payrolls report to November 8th should give ADP another month in the spotlight as the market continues to assess the impact of the shutdown on economic activity. We expect a lackluster 150K rise in ADP following last month’s 166K increase, though the bias is tilted to the downside given the potential for a greater than anticipated impact from the government shutdown. While the market could come away disappointed if the print comes in below expectations, we suspect that a below-consensus print may be partly discounted by the market as being transitory. The delayed September CPI report will also be closely watched, though with both the headline and core indices set to rise 0.2% m/m and pipeline inflation pressures remaining low, we believe the inflation print may do little to move markets”.
NZD/USD Levels
The 20 DMA is 0.8357, the 50 DMA is 0.8179 and the 200 DMA is 0.8182. RSI (14) reads 49.19. Supports are ascending from 0.8130, 0.8165, 0.8194, 0.8210, 0.8230. Spot is currently 0.8256 while resistances are 0.8274, 0.8303, 0.8332 and 0.8359