Back

It's Kiwi's last attempt to take off the ground

FXStreet (Moscow) - NZD/USD climbed to 0.8649 after opening the day at 0.8633; the bullish bias is weak but dominant so far.

Kiwi’s dawn

NZD came under pressure as soon as the market realized that RBNZ is in no rush to continue the tightening. The pair peaked on May,6, and since that time we have seen the gradual downward movement which stumbled around 0.8630 area. There were several reasons to sell the kiwi. First, the governor Wheeler expressed concerns about the weakening export prices. Second, the fundamentals released last week proved the economy recovery was still quite fragile - weak retail sales and business PMI index convinced the market there would be no rate increase next month. This week’s data may only support the selling, if New Zealand PPI and PMI services report bring negative surprises. Thus, the break below 0.8630 support level is not ruled out with 0.8600 as the next target.

What are today’s key NZD/USD levels?

Today's central pivot point can be found at 0.8636, with support below at 0.8616, 0.8604 and 0.8584, with resistance above at 0.8648, 0.8668 and 0.8680 Hourly Moving Averages are mostly bullish, with the 200SMA at 0.8652 and the daily 20EMA at 0.8630. Hourly RSI is bullish at 57.

Expect the AUD to underperform - RBS

Greg Gibbs, FX Trading Strategist at RBS, provides his view on the latest developments out of India, Malaysia and FX.
Read more Previous

EUR/JPY: time to go below 139.00 has come

EUR/JPY rebounded from the pivotal support of 139.00 and climbed to 139.25 during quiet Asian hours, but the upside movement was not sustained and the cross dropped marginally below 139.00.
Read more Next