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31 Aug 2015
NZD/USD consolidating the downside
FXStreet (Guatemala) - With spot at 0.6344 at time of writing, NZD/USD remains within the bearish start of week trend, following on from the bearish Asian open.
The minor recovery was short-lived overnight when the pair moved up from the early lows of 0.6430 when very strong New Zealand building permits for July were printed at 20.4% vs -4.1% previous.
NZD/USD weighed by risk aversion
However, a little later in the day, the ANZ business confidence numbers came in as -29.1 vs -15.3 in a series of weakness in the number which has been weighing on the bird. There is still an air of uncertainty in markets that is weighing on the commodity currencies and the greenback is strong with US T-Bills supporting the outlook for a higher dollar coupled with the possibility of a rate hike at the FOMC meeting later this month and subsequent Fed decision on the 17th.
This week brings the Nonfarm Payroll's for the US, while in respect of New Zealand, further events include the GDT prices ahead of business conditions. The RBA interest rate decision and the statement is tonight which would be of interest as a reference leading up to the RBNZ later in the month considering the recent market turmoil around China's economy, and the Antipodean's largest trading partner.
NZD/USD 50/200 SMA bearish divergence
NZD/USD remains under pressure Technically, the 200 SMA is moving lower at 0.6460 today on the 30 min sticks of which capped last week's minor recovery and the 50 DMA on the hourly is at 0.6424 today on a greater divergence to the downside with MACD beginning to stabilize in negative territory.
The minor recovery was short-lived overnight when the pair moved up from the early lows of 0.6430 when very strong New Zealand building permits for July were printed at 20.4% vs -4.1% previous.
NZD/USD weighed by risk aversion
However, a little later in the day, the ANZ business confidence numbers came in as -29.1 vs -15.3 in a series of weakness in the number which has been weighing on the bird. There is still an air of uncertainty in markets that is weighing on the commodity currencies and the greenback is strong with US T-Bills supporting the outlook for a higher dollar coupled with the possibility of a rate hike at the FOMC meeting later this month and subsequent Fed decision on the 17th.
This week brings the Nonfarm Payroll's for the US, while in respect of New Zealand, further events include the GDT prices ahead of business conditions. The RBA interest rate decision and the statement is tonight which would be of interest as a reference leading up to the RBNZ later in the month considering the recent market turmoil around China's economy, and the Antipodean's largest trading partner.
NZD/USD 50/200 SMA bearish divergence
NZD/USD remains under pressure Technically, the 200 SMA is moving lower at 0.6460 today on the 30 min sticks of which capped last week's minor recovery and the 50 DMA on the hourly is at 0.6424 today on a greater divergence to the downside with MACD beginning to stabilize in negative territory.