3 Sep 2013
NZD/USD up 118+ pips to print session highs at 0.7842
FXstreet.com (Chicago) - NZD/USD soared on the RBA interest rate decision matching 2.5% prior and expected results to reach 0.7838 session lows and retrace shortly thereafter.
High correlations
Price action reveals strong buying at the RBA data release maintaining rates at 2.5% in Australia. Ahead of GDP data due tomorrow in Australia, the pair, highly correlated with the Aussie, attempts to consolidate above 0.78 zone. The omission of key phrase on "the inflation outlook could provide some scope to ease policy further, should that be required to support demand" on the RBA report allows assumptions that dovish tone has declined.
NZD/USD Technical Levels
After breaking through immediate resistance momentarily at 0.7834, the pair trades at 0.7829 between supports at 0.7796 (August 29th highs), 0.7777 (August 24th lows) ahead of 0.7748 (August 27th lows) and resistances at 0.7834 (session highs), 0.7858 (August 23rd highs) followed by 0.7889 (August 20th lows). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and remains above the EMA20.
High correlations
Price action reveals strong buying at the RBA data release maintaining rates at 2.5% in Australia. Ahead of GDP data due tomorrow in Australia, the pair, highly correlated with the Aussie, attempts to consolidate above 0.78 zone. The omission of key phrase on "the inflation outlook could provide some scope to ease policy further, should that be required to support demand" on the RBA report allows assumptions that dovish tone has declined.
NZD/USD Technical Levels
After breaking through immediate resistance momentarily at 0.7834, the pair trades at 0.7829 between supports at 0.7796 (August 29th highs), 0.7777 (August 24th lows) ahead of 0.7748 (August 27th lows) and resistances at 0.7834 (session highs), 0.7858 (August 23rd highs) followed by 0.7889 (August 20th lows). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and remains above the EMA20.