NZD/USD downside open below key 0.6620

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6612 with a high of 0.6618 and a low of 0.6605.

    NZD/USD is consolidated on the 0.66 handle treading along the 20 SMA at 0.6611 at the moment as we await the key Nonfarm Payrolls tomorrow. In the meantime, the focus in Asia will stay with the RBA statement and this could offer a catalyst for the Antipodean currencies on anything out of the ordinary coming from the statement that has not already been priced into the Aussie.

    RBA Statement preview: What to expect in AUD/USD

    RBA statement coming up - Westpac

    However, the downside in the bird is at play, despite the stability recently founded on support of the break below the 0.66 handle. The signals for the RBNZ have not been encouraging, while a weakening labour market, softness in commodity prices and headwinds from China continue to raise concerns. But, from here , the greenback will be in the drivers seat and we await the outcome of the prelude to the Dec meeting that could come out of tomorrow's US jobs report.

    Nonfarm Payrolls: Can it confirm a December rate hike?

    NZD/USD levels

    Technically, 0.6650 resistance was weighing in on the bird and the minor recovery has been capped just shy of this psychological level around the 55 SMA on the hourly chart. On a continuation of the recovery, the next real key resistances come as 0.6705/20. However, on the flip side, the price is now trading below he 200 SMA on the 4hr is at 0.6620 and this has opened up prospects for a test below 0.6600 ahead of a breakout to 0.6515 and the 55 DMA.
    For more information, read our latest forex news.

Share This Page

free forex signals