16 Dec 2013
NZD/USD enters week in “no-man’s land” awaiting direction from US politicians; 0.8241 first support
FXstreet.com (Barcelona) - The NZD/USD is caught in a tug-of-war between the multiple forces driving the US Dollar and the Asia-Pacific forces driving the Kiwi.
NZD/USD traders will have to rely on US data for the rest of the session Monday
The NZD/USD cross is trading modestly higher following the release of the New Zealand Westpac Consumer Survey which showed nice month / month growth. For the rest of the Monday session, traders will be monitoring the cross’ reaction to Chinese Manufacturing PMI and a batch of US data points including:
• US Non-Farm Productivity data
• US Unit Labor Costs
• US NY Empire State Manufacturing Index
• US Markit Manufacturing PMI
• US Net Long Term TIC Flows
• US Industrial Production & Capacity Utilization
Besides all of the data flow, traders will be closely monitoring the developments in Washington, DC. If the DC politicians can work together well on budget issues, the Federal Reserve may be more likely to taper QE spending and send the DXY higher and the NZD/USD lower.
Technical outlook for NZD/USD
Elliott Wave technicians say the NZD/USD appears to have completed an ABC correction to the downside at approximately 0.8074 two weeks ago. Since then, the up move that has occurred brought the NZD/USD up to “correction resistance” at 0.8342. Resistance above 0.8342 comes in at the Fibonacci projections of 0.8409 and 0.8451. First support now comes in at 0.8241.
NZD/USD traders will have to rely on US data for the rest of the session Monday
The NZD/USD cross is trading modestly higher following the release of the New Zealand Westpac Consumer Survey which showed nice month / month growth. For the rest of the Monday session, traders will be monitoring the cross’ reaction to Chinese Manufacturing PMI and a batch of US data points including:
• US Non-Farm Productivity data
• US Unit Labor Costs
• US NY Empire State Manufacturing Index
• US Markit Manufacturing PMI
• US Net Long Term TIC Flows
• US Industrial Production & Capacity Utilization
Besides all of the data flow, traders will be closely monitoring the developments in Washington, DC. If the DC politicians can work together well on budget issues, the Federal Reserve may be more likely to taper QE spending and send the DXY higher and the NZD/USD lower.
Technical outlook for NZD/USD
Elliott Wave technicians say the NZD/USD appears to have completed an ABC correction to the downside at approximately 0.8074 two weeks ago. Since then, the up move that has occurred brought the NZD/USD up to “correction resistance” at 0.8342. Resistance above 0.8342 comes in at the Fibonacci projections of 0.8409 and 0.8451. First support now comes in at 0.8241.