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2 Aug 2013
NZD/USD regaining 0.7900
FXstreet.com (London) - NZD/USD is steady on the open in European markets, eyes 0.7900.
NZD/USD was subject to a wave of bullish key US data that was restoring faith back into Fed tapering. The pair was losing over 160 pips from Wednesday – Thursday (post a nervous FOMC) after finding a low of 0.7853, despite a buoyant night in equity and commodity markets. However the pair has walked to breach 0.7900 but only to find more, yet tentative, offers that are currently capping the pair here for the time being. Up ahead today we have US Non Farm Payrolls in the spotlight as the main event on the calendar.
US Data
Whether the USD is going to be able to continue performing so well is now all down todays employment data from the US. Formal expectations for July non-farm payrolls comes at 185k. However, the whisper number is likely to be slightly better following the positive ADP report. Analysts at Danske Bank said “We expect total payrolls to gain 175,000 in July and private job growth to reach 185,000. The service sector will remain the main contributor to job growth but the latest data from the manufacturing sector suggest that job growth in this part of the economy likely turned positive in July as well. We expect the government to continue to shed jobs at a 10,000 persons per month pace. We look for a one notch decline in the unemployment rate from 7.6% to 7.5%. This should support expectations of a September start to Fed's QE tapering”.
NZD/USD downside bias and levels
With a current bias to the downside, trading below the pivot 0.7811, the 20 d ma is at 0.7911, 50d ma 0.7918 and 200d ma is at 0.8226. RSI (9) reads 43.21. Supports are ascending from 0.7730, 0.7794, 0.7840, 0.7853. Spot is currently 0.7897. Resistances are 0.7931, 0.7958, 0.7995 and 0.8016.
NZD/USD was subject to a wave of bullish key US data that was restoring faith back into Fed tapering. The pair was losing over 160 pips from Wednesday – Thursday (post a nervous FOMC) after finding a low of 0.7853, despite a buoyant night in equity and commodity markets. However the pair has walked to breach 0.7900 but only to find more, yet tentative, offers that are currently capping the pair here for the time being. Up ahead today we have US Non Farm Payrolls in the spotlight as the main event on the calendar.
US Data
Whether the USD is going to be able to continue performing so well is now all down todays employment data from the US. Formal expectations for July non-farm payrolls comes at 185k. However, the whisper number is likely to be slightly better following the positive ADP report. Analysts at Danske Bank said “We expect total payrolls to gain 175,000 in July and private job growth to reach 185,000. The service sector will remain the main contributor to job growth but the latest data from the manufacturing sector suggest that job growth in this part of the economy likely turned positive in July as well. We expect the government to continue to shed jobs at a 10,000 persons per month pace. We look for a one notch decline in the unemployment rate from 7.6% to 7.5%. This should support expectations of a September start to Fed's QE tapering”.
NZD/USD downside bias and levels
With a current bias to the downside, trading below the pivot 0.7811, the 20 d ma is at 0.7911, 50d ma 0.7918 and 200d ma is at 0.8226. RSI (9) reads 43.21. Supports are ascending from 0.7730, 0.7794, 0.7840, 0.7853. Spot is currently 0.7897. Resistances are 0.7931, 0.7958, 0.7995 and 0.8016.