22 Jul 2014
NZD/USD coming with a negative bias towards 0.86 handle
FXStreet (Guatemala) - NZD/USD is trading at 0.8685, down -0.02% on the day, having posted a daily high at 0.8694 and low at 0.8683.
With a good deal of offers protecting the 0.87 handle NZD/USD struggles to hold form here and comes with a bearish bias. Meanwhile, Jane Foley,
Senior Currency Strategist at Rabobank noted that the Q2 CPI inflation registered a softer than expected 1.6% y/y and said, “This suggests that price pressures have been checked both by the firmer tone in interest rates but also as a result of the strength of the NZD. While another rate hike this month appears to be a foregone conclusion we expect the RBNZ’s hawkish rhetoric to be toned down at the July 23 meeting and we expect NZD/USD will soften back to 0.86 area in the coming months.
NZD/USD Levels
With spot trading at 0.8687, we can see next resistance ahead at 0.8693 (Hourly 20 EMA), and 0.8706 (Daily Classic R1). Support below can be found at 0.8678 (Daily Classic PP), 0.8669 (Monthly Low) and 0.8669 (Weekly Low).
With a good deal of offers protecting the 0.87 handle NZD/USD struggles to hold form here and comes with a bearish bias. Meanwhile, Jane Foley,
Senior Currency Strategist at Rabobank noted that the Q2 CPI inflation registered a softer than expected 1.6% y/y and said, “This suggests that price pressures have been checked both by the firmer tone in interest rates but also as a result of the strength of the NZD. While another rate hike this month appears to be a foregone conclusion we expect the RBNZ’s hawkish rhetoric to be toned down at the July 23 meeting and we expect NZD/USD will soften back to 0.86 area in the coming months.
NZD/USD Levels
With spot trading at 0.8687, we can see next resistance ahead at 0.8693 (Hourly 20 EMA), and 0.8706 (Daily Classic R1). Support below can be found at 0.8678 (Daily Classic PP), 0.8669 (Monthly Low) and 0.8669 (Weekly Low).