NZD/USD spikes on hot air on fun packed week ahead

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 1, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6592 with a high of 0.6604 and a low of 0.6579.

    NZD/USD has popped up and marks fresh highs for the week in an extension of the recovery from down at 0.6510. There is a lack of directional sentiment in the market as some are backing a buy the rumour sell the fact with regards to the Central Banks.

    However, the recent price display is not in line with fundamentals so it may take further catalysts this week to get some sense of direction back into play while the broader trend favours the downside, with an easing bias from the RBNZ and a potential normalisation of rate taking place from the Fed this month. The Nonfarm Payrolls will be a helpful guide in that respect while the GDT price index in respect of the Kiwi and dairy prices will be a sure event to trade.

    NZD/USD levels

    Analysts at UOB recently explained that they continue to hold a neutral view for NZD (this pair has been trading in a 0.6470/0.6605 range since 19th of November). "While short-term downward momentum is picking up, only a clear break below 0.6470 would indicate the start of a sustained down-move." Meanwhile, the bid is holding above the 1hr candles 20 SMA at 0.6570.
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