28 Apr 2015
NZD/USD: Bulls in charge around EMA5 ahead of RBNZ this week
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7717 with a high of 0.7741 and a low of 0.7616.
NZD/USD is following the Aussie's lead as the greenback continues to slide and commodity currencies are taking off testing key levels to the upside. In the case of the bird, it is assumed that the RBNZ is likely to stick with its current regime but there could be a dovish rhetoric to come from a once hawkish Central Bank next meeting this week.
However, analyst at TD Securities suggest the doves might be disappointed. "For Thursday’s RBNZ OCR Review we expect a brief 3-4 paragraphs explaining that data and events have unfolded largely as expected, hence the RBNZ is likely to again disappoint the doves via “future interest rate adjustments, either up or down, will depend on the emerging flow of economic data”. We expect the doves will be disappointed."
Technically, the bird is well in to overbought territory on the hourly sticks, with RSI (14) over 70, trading around S2 resistance and EMA 5 with 0.7735 as next key barrier to accomplish on the bid. To the downside, 0.7634 the pivot would act as support ahead of 0.76 the figure.
NZD/USD is following the Aussie's lead as the greenback continues to slide and commodity currencies are taking off testing key levels to the upside. In the case of the bird, it is assumed that the RBNZ is likely to stick with its current regime but there could be a dovish rhetoric to come from a once hawkish Central Bank next meeting this week.
However, analyst at TD Securities suggest the doves might be disappointed. "For Thursday’s RBNZ OCR Review we expect a brief 3-4 paragraphs explaining that data and events have unfolded largely as expected, hence the RBNZ is likely to again disappoint the doves via “future interest rate adjustments, either up or down, will depend on the emerging flow of economic data”. We expect the doves will be disappointed."
Technically, the bird is well in to overbought territory on the hourly sticks, with RSI (14) over 70, trading around S2 resistance and EMA 5 with 0.7735 as next key barrier to accomplish on the bid. To the downside, 0.7634 the pivot would act as support ahead of 0.76 the figure.