22 Aug 2013
NZD/USD finds support
FXstreet.com (London) - NZD/USD reached a low overnight to 0.7810 while the markets digested the FOMC minutes, which read a little more hawkish than expected.
The minutes supported the impression that September remains a likely starting point for reducing asset purchases. The coming FOMC tapering is testing the durability of economies in Asia that rely on easy money financing. “A side effect of New Zealand’s macro-prudential measures introduced this week is to discourage capital inflows, meaning policymakers there are actually working in the same direction as the FOMC, and doubling-up the downward pressure on the NZD within the broader context of Asian financial market stress,” said Andrew Salter at ANZ Research. On the calendar for today, in the US, the weekly initial unemployment claims will be in focus closely after the impressive fall to just 320K last week. The results could prove a strong US labour market. The annual Jackson Hole conference for central bankers also starts today. However, there are no prominent Fed speakers that are scheduled, so there shouldn’t be any new insight into Fed's monetary policy thinking.
NZD/USD finds some support
The NZD/USD is continuing to look heavy and the 20 DMA is .7985, the 50 DMA is .7908 and the 200 DMA is .8210. RSI (9) reads 35.97. Supports are ascending from .7670, .7737, .7787, .7809. Spot is currently .7843 while resistances are .7918, .7940, .7953, .7982.
The minutes supported the impression that September remains a likely starting point for reducing asset purchases. The coming FOMC tapering is testing the durability of economies in Asia that rely on easy money financing. “A side effect of New Zealand’s macro-prudential measures introduced this week is to discourage capital inflows, meaning policymakers there are actually working in the same direction as the FOMC, and doubling-up the downward pressure on the NZD within the broader context of Asian financial market stress,” said Andrew Salter at ANZ Research. On the calendar for today, in the US, the weekly initial unemployment claims will be in focus closely after the impressive fall to just 320K last week. The results could prove a strong US labour market. The annual Jackson Hole conference for central bankers also starts today. However, there are no prominent Fed speakers that are scheduled, so there shouldn’t be any new insight into Fed's monetary policy thinking.
NZD/USD finds some support
The NZD/USD is continuing to look heavy and the 20 DMA is .7985, the 50 DMA is .7908 and the 200 DMA is .8210. RSI (9) reads 35.97. Supports are ascending from .7670, .7737, .7787, .7809. Spot is currently .7843 while resistances are .7918, .7940, .7953, .7982.