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19 May 2014
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.
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.