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16 Aug 2013
NZD/USD resistance 0.8100
FXstreet.com (Barcelona) - NZD/USD dropped from 0.8100 in London yesterday, then climbed from below 0.8000 back above 0.8100 overnight when offers took the pair back to 0.8067 on handover to the Europeans again.
For NZD/USD, the main headlines were the earthquakes! “A series of earthquakes have impacted New Zealand’s capital, Wellington: the strongest was 6.2 at 2:30pm, with aftershocks as strong as 5.8. Initial reports from the New Zealand press claim that there is no immediate severe damage, although traffic snarled in panic as some chose to leave the city area. The NZD slid to $US0.805 on the headlines, reversing the mini-rally to $US0.811 in earlier trading. While the NZD may under perform over the next few trading zones we do not expect the impact to be long-lasting given the Governor’s clear tightening bias. The local Wellington markets were interrupted and prices on screen may not necessarily have traded but it seems fair to conclude that fixed income rallied up to 8bp across the bond and swap curves in response to the earthquake(s). Policy implication is little at this stage. While earthquakes are devastating, this one – so far – could be limited to impacting confidence, rather than present a risk to the otherwise buoyant outlook for the NZ economy”, - Alvin Pontoh, Asia-Pacific Macro Strategist, FX & Rates Strategy at TD Securities.
NZD/USD with a positive bias
NZDUSD is still in positive territory, and the 20 dma is 0.7976, the 50 dma is 0.7901, the 200 dma is 0.8213. RSI (9) is reading 63.21. Supports are ascending from 0.7957, 0.7997, 0.8005 0.8038. Spot is currently 0.8067 while resistances are 0.8137, 0.8164 0.8173 and 0.8213.
For NZD/USD, the main headlines were the earthquakes! “A series of earthquakes have impacted New Zealand’s capital, Wellington: the strongest was 6.2 at 2:30pm, with aftershocks as strong as 5.8. Initial reports from the New Zealand press claim that there is no immediate severe damage, although traffic snarled in panic as some chose to leave the city area. The NZD slid to $US0.805 on the headlines, reversing the mini-rally to $US0.811 in earlier trading. While the NZD may under perform over the next few trading zones we do not expect the impact to be long-lasting given the Governor’s clear tightening bias. The local Wellington markets were interrupted and prices on screen may not necessarily have traded but it seems fair to conclude that fixed income rallied up to 8bp across the bond and swap curves in response to the earthquake(s). Policy implication is little at this stage. While earthquakes are devastating, this one – so far – could be limited to impacting confidence, rather than present a risk to the otherwise buoyant outlook for the NZ economy”, - Alvin Pontoh, Asia-Pacific Macro Strategist, FX & Rates Strategy at TD Securities.
NZD/USD with a positive bias
NZDUSD is still in positive territory, and the 20 dma is 0.7976, the 50 dma is 0.7901, the 200 dma is 0.8213. RSI (9) is reading 63.21. Supports are ascending from 0.7957, 0.7997, 0.8005 0.8038. Spot is currently 0.8067 while resistances are 0.8137, 0.8164 0.8173 and 0.8213.