6 Jun 2014
NZD/USD testing downside ahead of dovish RBNZ prospects
FXStreet (Guatemala) - NZD/USD is trading at 0.8501, up 0.01% on the day, having posted a daily high at 0.8555 and low at 0.8481.
NZD/USD price action has been around the US calendar today. Having gained the 0.85 handle on the run up overnight through 0.8550, the pair has dropped back to test the downside of 0.8500 post the jobs data from the US. The US non-farm payrolls, rose by 217k in May and that was pretty much in line with expectations. For next week, the US event calendar slows considerably but there are dovish risks ahead fro the RBNZ. Analysts at RBS explained, “Amid a still-strong currency and falling dairy prices, the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has priced in. “A pause by the RBNZ next week and/or a signal that the Bank may pause and assess the merits of future hikes at its meeting next week leaves us expecting NZD downside next week”.
NZD/USD Levels
Spot is presently trading at 0.8502, and next resistance can be seen at 0.8502 (Hourly 20 EMA), 0.8511 (Weekly Classic PP), 0.8514 (Yesterday's High), 0.8532 (Daily 20 SMA) and 0.8537 (Daily Classic R1). Support below can be found at 0.8500 (Weekly High), 0.8499 (Daily Open), 0.8483 (Daily 100 SMA), 0.8481 (Daily Low) and 0.8477 (Hourly 200 SMA).
NZD/USD price action has been around the US calendar today. Having gained the 0.85 handle on the run up overnight through 0.8550, the pair has dropped back to test the downside of 0.8500 post the jobs data from the US. The US non-farm payrolls, rose by 217k in May and that was pretty much in line with expectations. For next week, the US event calendar slows considerably but there are dovish risks ahead fro the RBNZ. Analysts at RBS explained, “Amid a still-strong currency and falling dairy prices, the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has priced in. “A pause by the RBNZ next week and/or a signal that the Bank may pause and assess the merits of future hikes at its meeting next week leaves us expecting NZD downside next week”.
NZD/USD Levels
Spot is presently trading at 0.8502, and next resistance can be seen at 0.8502 (Hourly 20 EMA), 0.8511 (Weekly Classic PP), 0.8514 (Yesterday's High), 0.8532 (Daily 20 SMA) and 0.8537 (Daily Classic R1). Support below can be found at 0.8500 (Weekly High), 0.8499 (Daily Open), 0.8483 (Daily 100 SMA), 0.8481 (Daily Low) and 0.8477 (Hourly 200 SMA).