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NZD/USD stages solid comeback, breaks above hourly 100-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The NZD/USD pair stages a solid comeback in the mid-Asian session, reversing the RBNZ Governor Wheeler’s dovish comments induced downward spike reached just ahead of 0.66 barrier.

    NZD/USD on its way to hourly 50-SMA

    Currently, the NZD/USD pair trades 0.50% higher at fresh session highs of 0.6677, rallying more than 50 pips in Asia so far. After bottoming out at 0.6620 levels near the 10-DMA support, the Kiwi rebounded sharply higher largely back by the news that S&P upwardly revised New Zealand’s dairy giant Fonterra’s outlook to ‘stable’ from credit watch ‘negative.’

    While NZD/USD remained little affected by the poor CPI figures from New Zealand’s biggest trading partner, China. The CPI rose 1.6% y/y in September, after posting a 2.0% rise in August, missing expectations of the price gauge to increase 1.8% last month.

    Just ahead of NY close, RBNZ Governor Wheeler’s said in his speech that RBNZ sees further scope for easing, although such decision will remain data-dependant. His comments accentuated the downside in the Kiwi, pressuring it to the 10-DMA support.

    Looking ahead, markets will continue to absorb the latest economic news from across Asia while await the key macro releases from the US due later today for further momentum.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6694/6700 (hourly 50-SMA & round number), above which it could extend gains to 0.6742 (Oct 12 & Jul 29 High) levels. To the downside immediate support might be located at 0.6620/17 zone (Today’s Low & 10-DMA) below that 0.6600 (round number).
    For more information, read our latest forex news.

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