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4 Dec 2014
Kiwi weakens against the greenback
FXStreet (Mumbai) - NZD/USD pair is seen moderately lower in the early European session as dollar bulls have kept gains in the Kiwi at bay.
At the time of writing, the so-called Kiwi is trading 0.17% lower at 0.7750 levels. NZD/USD pair weakened as dollar gained strength after a robust US Service sector report. Barclays' Kieran Davies commented on the outlook for NZD, "Very low inflation, further declines in export commodity prices and continued slowing economic momentum are likely to see the RBNZ remain on hold until at least June 2015. In addition, the central bank’s discontent with the high level of the NZD should continue to encourage currency depreciation."
Moreover, the weakness witnessed in the AUS/USD pair is also likely to weigh on the Kiwi.
NZD/USD Technical Levels
The pair has an immediate resistance at 0.7761, above which gains could be extended to 0.7783 (50 - day SMA) levels. On the other hand, support is seen at 0.7738 and 0.7727 levels.
At the time of writing, the so-called Kiwi is trading 0.17% lower at 0.7750 levels. NZD/USD pair weakened as dollar gained strength after a robust US Service sector report. Barclays' Kieran Davies commented on the outlook for NZD, "Very low inflation, further declines in export commodity prices and continued slowing economic momentum are likely to see the RBNZ remain on hold until at least June 2015. In addition, the central bank’s discontent with the high level of the NZD should continue to encourage currency depreciation."
Moreover, the weakness witnessed in the AUS/USD pair is also likely to weigh on the Kiwi.
NZD/USD Technical Levels
The pair has an immediate resistance at 0.7761, above which gains could be extended to 0.7783 (50 - day SMA) levels. On the other hand, support is seen at 0.7738 and 0.7727 levels.