NZD/USD attempts post-RBNZ minor recovery, near 0.6450

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - NZD/USD is attempting a minor-recovery from post-RBNZ lows and now tests 0.6450 levels amid renewed selling seen in the oil prices.

    NZD/USD bounces-off lows near 0.6420

    Currently, the NZD/USD pair trades 0.26% higher at 0.6446, hovering close to post-RBNZ highs reached at 0.6451. The Kiwi witnessed more than a big figure drop as RBNZ moved towards the easing bias in wake of the global uncertainties. However, the bird found fresh bids near 0.6420 region and climbed back higher near 0.6450, where it now wavers.

    RBNZ noted in its policy statement, "uncertainty about the strength of the global economy has increased due to weaker growth in the developing world and concerns about China and other emerging markets,” and hence, "some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range."

    The bulls were offered some respite from the upbeat NZ trade balance data which revealed, the trade deficit contracted from a revised $799 million in November to $53 million last month, coming in stronger than the forecast deficit of $131 million.

    With the FOMC and RBNZ out of the way, the sentiment surrounding the oil prices will continue to lead the markets ahead of a slew of crucial economic data from the US, including the durable goods, jobless claims and pending home sales, due later in the NY session.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6461/ 64 (10-DMA/ 1h 200-SMA), above which it could extend gains to 0.6485/97 (1h 100-SMA/ 20-DMA) levels. To the downside immediate support might be located at 0.6423/ 18 (Jan 26 Low/ Daily low) and from there to 0.6409 (Jan 21 Low).
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