NZD/USD consolidating after big up move Tuesday; upside to 0.8556 likely

FXstreet.com (Barcelona) - The NZD/USD seems to be building up steam for one more shot higher to the Elliott Wave projected target of 0.8556. More US data Wednesday could give the boost necessary for this final wave higher.

NZD/USD to focus on US data Wednesday

During Wednesday’s session, NZD/USD traders will be reacting to US Monthly Mortgage Apps, the US Export Price Index and the US Housing Price Index. Late Wednesday – actually during the first hours of Thursday’s session - New Zealand Trade Balance data will be released.

Technical outlook for NZD/USD

Technicians say NZD/USD is in the fifth-wave of a five-wave move higher. The technical target for this wave comes in at 0.8556. First support for the cross comes in at Monday’s low of 0.8435. The next potential support below that comes in at the October 4th high of 0.8350.

RBA gets a one-off $8.8bn buffer fund injection

The Reserve Bank of Australia has finally seen its wishes of expanding its reserve fund come true after Australian Treasurer Joe Hockey agreed to inject $8.8 billion, capital aimed to cover losses on the Bank's FX holdings.
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