11 May 2015
NZD/USD: Downside wide open challenging March rally
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7353 with a high of 0.7480 and a low of 0.7339.
NZD/USD had continued to the downside on the open of Asia yesterday, forming a bearish gap in the charts that is yet to be filled, with additional supply coming through on a dovish outlook from the RBNZ this year. The big news on the weekend came from China cutting rates yet again by 0.25% and last week Fronterra downgraded their outlook for daily prices while the auction confirmed lower prices also, hitting a 5 year low.
Jobs data has also been disappointing of late with NZ Q1 showing an unexpected increase of 5.8% unemployment. Overnight there were further poor numbers, this time from the highstreet in card sales dropping heavily. The business climate was a miss in New Zealand also and this coupled with persistent jawboning of the currency by the RBNZ and a dovish rhetoric in recent commentary and statements, markets are pricing in at least one rate cut this year.
Technically, we are through the April lows and now tailing on the 18th March rally that came from 0.7280 territory which will likely offer support. This is a correction taking place from a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.
NZD/USD had continued to the downside on the open of Asia yesterday, forming a bearish gap in the charts that is yet to be filled, with additional supply coming through on a dovish outlook from the RBNZ this year. The big news on the weekend came from China cutting rates yet again by 0.25% and last week Fronterra downgraded their outlook for daily prices while the auction confirmed lower prices also, hitting a 5 year low.
Jobs data has also been disappointing of late with NZ Q1 showing an unexpected increase of 5.8% unemployment. Overnight there were further poor numbers, this time from the highstreet in card sales dropping heavily. The business climate was a miss in New Zealand also and this coupled with persistent jawboning of the currency by the RBNZ and a dovish rhetoric in recent commentary and statements, markets are pricing in at least one rate cut this year.
Technically, we are through the April lows and now tailing on the 18th March rally that came from 0.7280 territory which will likely offer support. This is a correction taking place from a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.