17 Jan 2014
NZD/USD a slow grind lower?
FXstreet.com (Guatemala) - Strategists at Brown Brothers Harriman noted that NZD/USD dropped nearly 1% today, though there does not seem to be a macro trigger.
The NZD/USD is continuing on the offer in a slow grind post the drop. The strategists at BBH said, “The market is pricing in almost a 50% chance of a rate hike at the end of the month, more than double the chance seen a couple of months ago. The market had gone a long way toward pricing in three hikes this year. The move today seems largely an issue of positioning and speculative sales in the face of the losses suffered by the Aussie and Canadian dollars. We also note that the Aussie-Kiwi cross neared the 1.05 level, which has served as a bottom since 1995, with two brief violations. This appears to have also spurred some position adjustment today”. Meanwhile the University of Michigan consumer sentiment disappointed at 80.4, down on the consensus of 83.5 and previous 82.5, but despite this the dollar is in profit taking mode ahead of the close.
NZD/USD Levels
The 20 DMA is 0.8250, the 50 DMA is 0.8245 and the 200 DMA is 0.8151. RSI (14) reads 39.47 Support are 0.8207 and 0.8225. Spot is currently 0.8255 with resistances at 0.8284, 0.8372, 0.8433, 0.8446 and 0.8518.
The NZD/USD is continuing on the offer in a slow grind post the drop. The strategists at BBH said, “The market is pricing in almost a 50% chance of a rate hike at the end of the month, more than double the chance seen a couple of months ago. The market had gone a long way toward pricing in three hikes this year. The move today seems largely an issue of positioning and speculative sales in the face of the losses suffered by the Aussie and Canadian dollars. We also note that the Aussie-Kiwi cross neared the 1.05 level, which has served as a bottom since 1995, with two brief violations. This appears to have also spurred some position adjustment today”. Meanwhile the University of Michigan consumer sentiment disappointed at 80.4, down on the consensus of 83.5 and previous 82.5, but despite this the dollar is in profit taking mode ahead of the close.
NZD/USD Levels
The 20 DMA is 0.8250, the 50 DMA is 0.8245 and the 200 DMA is 0.8151. RSI (14) reads 39.47 Support are 0.8207 and 0.8225. Spot is currently 0.8255 with resistances at 0.8284, 0.8372, 0.8433, 0.8446 and 0.8518.