4 Sep 2015
NZD/USD downside remains compelling, now below key 0.63 handle
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6294 with a high of 0.6412 and a low of 0.6269.
NZD/USD has been suffering the downside this week, extending broader losses from earlier in the year on the divergence between the FED and RBNZ and today has dropped to a low of 0.6269 from a high of 0.6412 post the Nonfarm Payrolls data.
The data was welcomed by the bulls, despite a miss on expectations as when looking behind the headline number, market participants will instead focus on the favorable internals, as analyst at BBH noted here, that include a drop in the unemployment rate to 5.1%, which is into the band the Fed regards a full employment.
Analysts at TD Securities explained that Next week is all about the RBNZ where they expect the bank to cut 25bps and lay the groundwork for a 2.5% cash rate. "Other data out in the week—Q2 Manufacturing, REINZ home prices, Food prices and offshore bond holdings."
NZD/USD making a key technical downside break
Technically this break of 0.6300 is significant and now opens-up an avenue to 0.6220 and 0.5910. To the upside, on a recovery, a break of the 50 DMA at 0.6580 is required to alleviate immediate downside pressures. However, for a sustained bullish correction, the bird would somehow need to manage closes back on the 200 DMA at 0.7250.
NZD/USD has been suffering the downside this week, extending broader losses from earlier in the year on the divergence between the FED and RBNZ and today has dropped to a low of 0.6269 from a high of 0.6412 post the Nonfarm Payrolls data.
The data was welcomed by the bulls, despite a miss on expectations as when looking behind the headline number, market participants will instead focus on the favorable internals, as analyst at BBH noted here, that include a drop in the unemployment rate to 5.1%, which is into the band the Fed regards a full employment.
Analysts at TD Securities explained that Next week is all about the RBNZ where they expect the bank to cut 25bps and lay the groundwork for a 2.5% cash rate. "Other data out in the week—Q2 Manufacturing, REINZ home prices, Food prices and offshore bond holdings."
NZD/USD making a key technical downside break
Technically this break of 0.6300 is significant and now opens-up an avenue to 0.6220 and 0.5910. To the upside, on a recovery, a break of the 50 DMA at 0.6580 is required to alleviate immediate downside pressures. However, for a sustained bullish correction, the bird would somehow need to manage closes back on the 200 DMA at 0.7250.