12 Nov 2013
NZD/USD on the back-foot; uptrend momentum wanes
FXstreet.com (Athens) – The NZD/USD is trading slightly higher in the wake of the European trading session, but seems that generally the cross is losing its upwards steam momentum.
NZD/USD under pressure as REINZ reported house indexes at record highs
The NZD/USD has been caught amidst a volatile trading session, but the all in all the topside momentum of the kiwi continues to wane. Briefly, the NZD/USD traded in wide range amidst the Asian trading session (0.8206-0.8260), but as soon as the REINZ reported that their house price index had risen a further 1.6% on a monthly basis, printing simultaneously an annual record high as of 9.9%, the kiwi found itself under pressure. Looking behind the curtains the market participants should be bear upon consideration that the RBNZ introduced measures to cool off any potential bubble regarding the house prices; therefore, if the measures introduced (LVR restrictions), are proved to be insufficient to hamper the house price increases, the RBNZ may be enforced to hike rates sooner.
Technical Aspects on the NZD/USD
It would be wise that traders should focus on the upcoming Tuesday’s report at 20:00 GMT hours. More or less, the RBNZ will elaborate on the effectiveness of the housing loans restrictions that head been implemented by the 1st as of October, providing with some clues the market participants on its monetary policy. Taken for granted that the cross is under pressure, traders should pay attention to the initial support of 0.8200, followed by the 0.8178 DMA at 0.8170. In a case the 0.8170 level is decently breached, then the cross might be dragged further downwards, near the 0.8108 (50% Fibonacci retracement of the August-October rally).
NZD/USD under pressure as REINZ reported house indexes at record highs
The NZD/USD has been caught amidst a volatile trading session, but the all in all the topside momentum of the kiwi continues to wane. Briefly, the NZD/USD traded in wide range amidst the Asian trading session (0.8206-0.8260), but as soon as the REINZ reported that their house price index had risen a further 1.6% on a monthly basis, printing simultaneously an annual record high as of 9.9%, the kiwi found itself under pressure. Looking behind the curtains the market participants should be bear upon consideration that the RBNZ introduced measures to cool off any potential bubble regarding the house prices; therefore, if the measures introduced (LVR restrictions), are proved to be insufficient to hamper the house price increases, the RBNZ may be enforced to hike rates sooner.
Technical Aspects on the NZD/USD
It would be wise that traders should focus on the upcoming Tuesday’s report at 20:00 GMT hours. More or less, the RBNZ will elaborate on the effectiveness of the housing loans restrictions that head been implemented by the 1st as of October, providing with some clues the market participants on its monetary policy. Taken for granted that the cross is under pressure, traders should pay attention to the initial support of 0.8200, followed by the 0.8178 DMA at 0.8170. In a case the 0.8170 level is decently breached, then the cross might be dragged further downwards, near the 0.8108 (50% Fibonacci retracement of the August-October rally).