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19 Sep 2013
NZD/USD soars as the “kiwi” outperforms
FXstreet.com (Athens)- The NZD/USD is skyrocketing after FOMC closed the “tapering” doors, thus fuelling riskier crosses.
NZD/USD roars as “kiwi” outperforms on great NZ GDP data, alongside with FOMC decision
The NZD/USD is climbing higher amidst a very positive risk-on environment fuelled by Fed, in combination with solid GDP data on behalf of New Zealand. The rally in global capital markets as a sign of general ‘risk appetite’ feeds the high yield currency, as the “kiwi” takes advantage not only of being a high-risk yield currency, but also due to the really good GDP data earlier the morning. Elaborating on, investors should bear into consideration that with a much better GDP announce this morning, the near 1.00 percent increase in the benchmark rate seen through next September is at least appealing.
Technical Perspective and Outlook on NZD/USD
Traders should be aware of the fact that the “kiwi” is again and again highly correlated with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. What’s more Tom Kenny, Tony Morriss and Richard Yetsenga on behalf of ANZ Research, suggest that “the USD is likely to continue trading very poorly in the very short term; Reversification is on hold at least until the US data re-strengthens and/or we approach the December FOMC meeting. Targets would include, NZD/USD 0.8680.”
NZD/USD roars as “kiwi” outperforms on great NZ GDP data, alongside with FOMC decision
The NZD/USD is climbing higher amidst a very positive risk-on environment fuelled by Fed, in combination with solid GDP data on behalf of New Zealand. The rally in global capital markets as a sign of general ‘risk appetite’ feeds the high yield currency, as the “kiwi” takes advantage not only of being a high-risk yield currency, but also due to the really good GDP data earlier the morning. Elaborating on, investors should bear into consideration that with a much better GDP announce this morning, the near 1.00 percent increase in the benchmark rate seen through next September is at least appealing.
Technical Perspective and Outlook on NZD/USD
Traders should be aware of the fact that the “kiwi” is again and again highly correlated with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. What’s more Tom Kenny, Tony Morriss and Richard Yetsenga on behalf of ANZ Research, suggest that “the USD is likely to continue trading very poorly in the very short term; Reversification is on hold at least until the US data re-strengthens and/or we approach the December FOMC meeting. Targets would include, NZD/USD 0.8680.”