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NZD/USD extending losses to test 0.8540 support

FXStreet (Guatemala) - NZD/USD has edged lower still in an extension on the North American fall out despite New Zealand GDP slightly improving upon expectations at 3.1% vs 3.0% consensus and 3.5% previous YoY for (Q4), but remaining in line QoQ at 0.9%.

NZD/USD has lost all of its gains from Tuesday’s rally, dropping the 0.86 handle and is now testing the 0.8540 support level. The main area from the calendar that markets are focusing their attention to, however, is the FOMC where the Fed tapered $10B from the their asset purchasing programme and gave rise to a more hawkish outlook.

NZD/USD Levels

The 20 DMA is 0.8422, the 50 DMA is 0.8335 and the 200 DMA is 0.8167. RSI (14) 42.04. Supports are 0.8497, 0.8510 and 0.8540. Spot is 0.8538 while resistances are 0.8582, 0.8610, 0.8641, 0.8676, 0.8733 and 0.8794.

New Zealand GDP Q4 2013 in line with expectations

Gross domestic product in New Zealand for the fourth quarter of 2013, QoQ, came at +0.9% vs 0.9% expected and +1.4% last. The yearly reading came at +3.1% vs 3% expected and +3.5% last.
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AUD/NZD rebounds from 1.0540 after NZ GDP

The AUD/NZD briefly spiked lower from 1.0555 to 1.0526, hitting a 7-week low but then bounced sharply climbing to 1.0580 following the release of economic data from New Zealand, where GDP expanded 0.9% during the fourth quarter in line with expectations.
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