6 Sep 2013
NZD/USD upwards ahead of NFP data
FXstreet.com (Athens)– The NZD/USD is trading on the upper level today, in a light calendar to distract us from the NFP release.
The NZD/USD will probably get wounded if stronger NFP data come across the board
Stronger or at least solid with expectations NFP data will finally reinforce the notorious ‘Septaper’, spurring risk-aversion. Given the proximity to the FOMC’s policy decision, USD should again be positively correlated with the strength of the data e.g. NZD/USD should fall on a strong report and vice versa. What’s more, regarding the ‘kiwi’, the triennial BIS survey of global FX turnover was released, showing the ‘kiwi’ retained its 10th ranking with an increased share of 2.0% (versus 1.6%). More precisely, Total ‘kiwi’ daily turnover rose to $105bn, of which $39bn was spot. Last but not least, the new LVR limits have knocked back rate hike expectations, while NZ economic indicators suggested NZ GDP growth may soon breeze through 4%.
Technical outlook on NZD/USD
At the time of writing, the pair is trading at 0.7925 area, up 0.51%, near its daily high as of 0.7928. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15- minutes chart time framework. Daily pivot point support can be found at 0.7870, 0.7850, 0.7831 and resistance at 0.7931, 0.7950 and 0.7970, respectively.
The NZD/USD will probably get wounded if stronger NFP data come across the board
Stronger or at least solid with expectations NFP data will finally reinforce the notorious ‘Septaper’, spurring risk-aversion. Given the proximity to the FOMC’s policy decision, USD should again be positively correlated with the strength of the data e.g. NZD/USD should fall on a strong report and vice versa. What’s more, regarding the ‘kiwi’, the triennial BIS survey of global FX turnover was released, showing the ‘kiwi’ retained its 10th ranking with an increased share of 2.0% (versus 1.6%). More precisely, Total ‘kiwi’ daily turnover rose to $105bn, of which $39bn was spot. Last but not least, the new LVR limits have knocked back rate hike expectations, while NZ economic indicators suggested NZ GDP growth may soon breeze through 4%.
Technical outlook on NZD/USD
At the time of writing, the pair is trading at 0.7925 area, up 0.51%, near its daily high as of 0.7928. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15- minutes chart time framework. Daily pivot point support can be found at 0.7870, 0.7850, 0.7831 and resistance at 0.7931, 0.7950 and 0.7970, respectively.