8 Jul 2015
NZD/USD: risks to the downside, Greece, RBNZ and commodities
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6670 with a high of 0.6670 and a low of 0.6640.
NZD/USD has been on the bid on the last hourly stick managing 20 pips or so if a run against the dominant bearish trend.
NZD/USD price action
NZD/USD gapped down from 0.72 handle in early June and has been a steady pace of supply since, finding offers vs demand on pauses of the trend. Overnight saw the largest slide in price since the opening bearish gap this week presenting new lows of 0.6620 from where there has been a chop of a minor recovery to current highs in to early Asia.
NZD/USD fundamentals
NZD/USD has faced a stronger greenback on risk-off safe haven play and diversification of funds, which will typically weigh on the Kiwi. Domestically, the bird faces challenges with the bearish commodity sector, the RBNZ intent on jawboning the currency to more favourable and competitive levels. We will turn to the RBNZ on July 22nd and markets are expecting a further cut to the cash rate by 25bps. Analysts at TD Securities explained.
Meanwhile, Greece has been a further prolonged risk in the FX space. Tsipras said the EZ summit today was positive. However, after the conclusion of the EU summit, German Chancellor Angela Merkel said that conditions for Greece aid negotiations to restart are not currently met. Friday, at 0830 GMT is the deadline for Greece's new proposals. An EU summit will take place on Sunday.
NZD/USD technically
NZD/USD traded to the lowest level since the beginning of June of 2010. 0.6680, 0.6880 and 0.7000 come as first major key resistance ahead of 0.7200. A break of 0.6620 to the downside opens 2010 lows of 0.6572.
NZD/USD has been on the bid on the last hourly stick managing 20 pips or so if a run against the dominant bearish trend.
NZD/USD price action
NZD/USD gapped down from 0.72 handle in early June and has been a steady pace of supply since, finding offers vs demand on pauses of the trend. Overnight saw the largest slide in price since the opening bearish gap this week presenting new lows of 0.6620 from where there has been a chop of a minor recovery to current highs in to early Asia.
NZD/USD fundamentals
NZD/USD has faced a stronger greenback on risk-off safe haven play and diversification of funds, which will typically weigh on the Kiwi. Domestically, the bird faces challenges with the bearish commodity sector, the RBNZ intent on jawboning the currency to more favourable and competitive levels. We will turn to the RBNZ on July 22nd and markets are expecting a further cut to the cash rate by 25bps. Analysts at TD Securities explained.
Meanwhile, Greece has been a further prolonged risk in the FX space. Tsipras said the EZ summit today was positive. However, after the conclusion of the EU summit, German Chancellor Angela Merkel said that conditions for Greece aid negotiations to restart are not currently met. Friday, at 0830 GMT is the deadline for Greece's new proposals. An EU summit will take place on Sunday.
NZD/USD technically
NZD/USD traded to the lowest level since the beginning of June of 2010. 0.6680, 0.6880 and 0.7000 come as first major key resistance ahead of 0.7200. A break of 0.6620 to the downside opens 2010 lows of 0.6572.