23 Jul 2015
NZD/USD technicals are bullish, look for 0.6720 - Scotiabank
FXStreet (Guatemala) - Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained that the birds most recent gains driven by a shift in tone at the RBNZ following the expected 25bpt rate cut to 3.00%.
Key Quotes:
"The statement softened its dovish bias, with further easing seen as ‘likely’ rather than ‘appropriate’."
"The statement also softened its view on the exchange rate, with NZD no longer seen as being ‘overvalued’."
NZD/USD technicals are shifting as we note a break above the 9 day MA (0.6609) and test of the 21 day MA (0.6693), providing confirmation of the turn in momentum indicators."
"The RSI is well off its oversold low from July 7 below 22. Near term risk appears biased to the upside, and we await confirmation looking to a break of 0.6720."
Key Quotes:
"The statement softened its dovish bias, with further easing seen as ‘likely’ rather than ‘appropriate’."
"The statement also softened its view on the exchange rate, with NZD no longer seen as being ‘overvalued’."
NZD/USD technicals are shifting as we note a break above the 9 day MA (0.6609) and test of the 21 day MA (0.6693), providing confirmation of the turn in momentum indicators."
"The RSI is well off its oversold low from July 7 below 22. Near term risk appears biased to the upside, and we await confirmation looking to a break of 0.6720."