14 Oct 2013
NZD/USD soars despite risk-off sentiment
FXstreet.com (Athens) – The NZD/USD is trading constantly higher since the early opening trading session in Asia on Sunday due to the fact that the kiwi is today’s winner currency across the board.
NZD/USD is heading again upwards as the “kiwi” is the best performing currency
The NZD/USD is trading upwards since the kick off of the Asian trading session despite the risk-off sentiment across the board. The NZD/USD is trading immensely upwards and taken for granted that since the Friday’s opening (0.8279) till now - at the time of writing (0.8367)- has gained approximately 100 pips, traders might get puzzled by the trading currency behavior. Elaborating on, while today risk-appetite has largely and by far hit the “snooze” button, the NZD/USD is trading higher ignoring totally the fact that the US debt ceiling issue continues to lurk. Traders should read between the lines to find good reasons for this uptrend behavior; one reason is that according to Barclays hedge funds take long positions in the NZD/JPY in order to take advantage of the carry trade; apart from this solid enough reason, if we looked behind the curtains we would also find out that the data released on Sunday pertaining to New Zealand economy were more than encouraging. More precisely, the Performance of Services Index shook off its soft spots of August and got a solid boost to 55.6 area, showing that - coupled with the decent PMI reading of 54.3 for the month – the GDP of New Zealand is on a very encouraging track. Furthermore, the September’s REINZ data also released at high levels with sales up 18.9% on a year ago.
Technical Aspects of the NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8357, up 0.44%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8253 S2: 0.8220 S3:0.8189 R1: 0.8403 R2: 0.8424 R3: 0.8445
NZD/USD is heading again upwards as the “kiwi” is the best performing currency
The NZD/USD is trading upwards since the kick off of the Asian trading session despite the risk-off sentiment across the board. The NZD/USD is trading immensely upwards and taken for granted that since the Friday’s opening (0.8279) till now - at the time of writing (0.8367)- has gained approximately 100 pips, traders might get puzzled by the trading currency behavior. Elaborating on, while today risk-appetite has largely and by far hit the “snooze” button, the NZD/USD is trading higher ignoring totally the fact that the US debt ceiling issue continues to lurk. Traders should read between the lines to find good reasons for this uptrend behavior; one reason is that according to Barclays hedge funds take long positions in the NZD/JPY in order to take advantage of the carry trade; apart from this solid enough reason, if we looked behind the curtains we would also find out that the data released on Sunday pertaining to New Zealand economy were more than encouraging. More precisely, the Performance of Services Index shook off its soft spots of August and got a solid boost to 55.6 area, showing that - coupled with the decent PMI reading of 54.3 for the month – the GDP of New Zealand is on a very encouraging track. Furthermore, the September’s REINZ data also released at high levels with sales up 18.9% on a year ago.
Technical Aspects of the NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8357, up 0.44%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8253 S2: 0.8220 S3:0.8189 R1: 0.8403 R2: 0.8424 R3: 0.8445