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NZD/USD: bulls committed despite FOMC/RBNZ divergence

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - NZD/USD has been well supported, despite the outlook for interest rate sin NZ and the US and the divergence between the two Central Banks.

    We recently got the details of the FOMC statement yesterday and it appears that the economy is on track to warrant a rate hike before the year is out, potentially steeping near term yields and supporting the greenback. Meanwhile, over the pacific, the RBNZ is concerned about headwinds from China and East Asia while the FOMC removed such remarks from this FOMC statement time around.

    Full text October FOMC statement

    Today, we await the ANZ activity outlook and business confidence for October before the BoJ that has the potential to liven things up later on.

    NZD/USD levels

    Technically, 0.67 is being tested to the upside, but the recovery is shallow and lacks drivers or momentum. Next support to the downside below the 0.66 handle comes as 0.6580. The 200 DMA at 0.7009 weighs on the price bird, despite a break above the 55 DMA at the start of October.
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