3 Sep 2013
NZD/USD trades in a tight range
FXstreet.com (Athens) - The NZD/USD is trading in a very tight range since the Asian opening, on a very shallow night.
The NZD/USD is sitting on the fence ahead of major banks releases and mainly the Fed ‘tapering’
The ‘kiwi’ is trading upwards against its leading counter-part after RBA left the rate unchanged. Traders should bear in mind that the fact that the RBA left the rates unchanged, may have a crucial impact on the pair. To elaborate on, according to BNZ Currency Research, “New Zealand’s relatively higher interest rates muddy the waters a little, however. Offshore real money has recently shown signs of a preference for NZ government bonds over those of Australia” and that “However, as the policy outlooks of the RBA and RBNZ have diverged, interest rates have become even more important than usual. The correlation between NZ-AU 2-year swap differentials and the NZD/AUD has increased to an incredible 97% over the past 12 months. Furthermore, the pair might be influenced by FED’s tapering decision later this month.
Technical Outlook on NZD/USD
At the time of writing, the pair is trading at 0.7824 area, up 0.19%, The FXstreet.com Trend Index shows the pair to be strongly bullish, on a 15 minutes timeframe. Daily pivot point support can be found at 0.7733, 0.7713, 0.7694 and resistance at 0.7871, 0.7891 and 0.7910, respectively.
The NZD/USD is sitting on the fence ahead of major banks releases and mainly the Fed ‘tapering’
The ‘kiwi’ is trading upwards against its leading counter-part after RBA left the rate unchanged. Traders should bear in mind that the fact that the RBA left the rates unchanged, may have a crucial impact on the pair. To elaborate on, according to BNZ Currency Research, “New Zealand’s relatively higher interest rates muddy the waters a little, however. Offshore real money has recently shown signs of a preference for NZ government bonds over those of Australia” and that “However, as the policy outlooks of the RBA and RBNZ have diverged, interest rates have become even more important than usual. The correlation between NZ-AU 2-year swap differentials and the NZD/AUD has increased to an incredible 97% over the past 12 months. Furthermore, the pair might be influenced by FED’s tapering decision later this month.
Technical Outlook on NZD/USD
At the time of writing, the pair is trading at 0.7824 area, up 0.19%, The FXstreet.com Trend Index shows the pair to be strongly bullish, on a 15 minutes timeframe. Daily pivot point support can be found at 0.7733, 0.7713, 0.7694 and resistance at 0.7871, 0.7891 and 0.7910, respectively.