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16 Mar 2015
NZD/USD demand takes the bird off 0.7320 support
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7363 with a high of 0.7372 and a low of 0.7315.
NZD/USD is breaking up through the mid point of the 0.73 handle and off the support at 0.7320 that developed at the close of last week's business. The bird performed well on the 11th of last week, rallying on us dollar weakness from sub 0.7200 and tested 0.7440 before any real kind of supply came in when the pair then drifted back down through the order of the 0.73 handle until the aforementioned support line.
The bird has found strength on the RBNZ of late, Jane Foley, Senior Currency Strategist at Rabobank, explained, "Although the RBNZ raised the OCR rate no less than four times last year from 2.5% to 3.5%, it has now made clear that policy is on hold. Inflation expectations have fallen and largely as a result of the drop in oil prices, headline CPI inflation is expected to fall to around zero in the current quarter." However, Foley added, "Assuming that broad based USD strength sustains this year, we see risk of NZD/USD trending lower towards 0.70 this year."
NZD/USD is breaking up through the mid point of the 0.73 handle and off the support at 0.7320 that developed at the close of last week's business. The bird performed well on the 11th of last week, rallying on us dollar weakness from sub 0.7200 and tested 0.7440 before any real kind of supply came in when the pair then drifted back down through the order of the 0.73 handle until the aforementioned support line.
The bird has found strength on the RBNZ of late, Jane Foley, Senior Currency Strategist at Rabobank, explained, "Although the RBNZ raised the OCR rate no less than four times last year from 2.5% to 3.5%, it has now made clear that policy is on hold. Inflation expectations have fallen and largely as a result of the drop in oil prices, headline CPI inflation is expected to fall to around zero in the current quarter." However, Foley added, "Assuming that broad based USD strength sustains this year, we see risk of NZD/USD trending lower towards 0.70 this year."