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21 Feb 2014
NZD/USD trapped on 0.8300
FXStreet (Guatemala) - NZD/USD is contained between resistance and support at 0.8300 the figure.
A weaker Consumer Confidence number followed by weak China PMI saw the bird come under pressure in yesterdays session. This took the NZD/USD to a low of 0.8243. In the European session and to some extent with a follow on in the US, the bird has found its way back to nest in on the pivot where 0.83 lies. The 0.8275 area and 100 day MA is key and it would be negative for the bird if it sees a close there into the weekend. Data wise, we are lacking today, however to be reminded, and RBS strategists explained that on Wednesday, “Chinese interest rates eased back and the equity market rebounded, but the recovery in Asian currencies, the AUD and NZD was relatively muted suggesting the market remains more sensitive to downside risks in China”. They further added however that New Zealand data keeps the RBNZ on track to hike next month, but said, “Rate hike expectations remain elevated with 120bp priced over 12 months and 175bp over 2 years. As such rates falls may result if the EM market fears continue top build”.
NZD/USD Levels
The 20 DMA is 0.8255, the 50 DMA is 0.8256 and the 200 DMA is 0.8130. RSI (14) reads 58.82. Supports are ascending from 0.8163, 0.8187, 0.8210, 0.8223 and 0.8275.. Spot is 0.8300 while resistances are 0.8302, 0.8343, 0.8393 and 0.8433.
A weaker Consumer Confidence number followed by weak China PMI saw the bird come under pressure in yesterdays session. This took the NZD/USD to a low of 0.8243. In the European session and to some extent with a follow on in the US, the bird has found its way back to nest in on the pivot where 0.83 lies. The 0.8275 area and 100 day MA is key and it would be negative for the bird if it sees a close there into the weekend. Data wise, we are lacking today, however to be reminded, and RBS strategists explained that on Wednesday, “Chinese interest rates eased back and the equity market rebounded, but the recovery in Asian currencies, the AUD and NZD was relatively muted suggesting the market remains more sensitive to downside risks in China”. They further added however that New Zealand data keeps the RBNZ on track to hike next month, but said, “Rate hike expectations remain elevated with 120bp priced over 12 months and 175bp over 2 years. As such rates falls may result if the EM market fears continue top build”.
NZD/USD Levels
The 20 DMA is 0.8255, the 50 DMA is 0.8256 and the 200 DMA is 0.8130. RSI (14) reads 58.82. Supports are ascending from 0.8163, 0.8187, 0.8210, 0.8223 and 0.8275.. Spot is 0.8300 while resistances are 0.8302, 0.8343, 0.8393 and 0.8433.