31 Jan 2014
NZD/USD dropping on RBNZ’s wheeler speaking
FXstreet.com (Guatemala) - NZD dropped 30 pips with comments from RBNZ's Wheeler around the dollar being at unsustainable levels in the long run.
Some increases in inflation is inevitable but house price inflation maybe easing and the economy is growing faster than potential output. Quite a mixed message there for markets for the end of the week to digest. The NZD has fared worse overall over the last few sessions post a dovish RBNZ yesterday. The market fully expects them to raise rates in March, but the rhetoric didn’t reflect the expectations for a bank that is about to embark on an aggressive tightening cycle. And that’s what is priced in.
NZD/USD Levels
The 20 DMA is 0.8286, the 50 DMA is 0.8242 and the 200 DMA is 0.8143. RSI (14) reads 50.70. Supports are ascending from 0.8037, 0.8084, 0.8119. Spot is 0.8151 while resistances are 0.8190, 0.8221, 0.8305, 0.8320 and 0.8346.
Some increases in inflation is inevitable but house price inflation maybe easing and the economy is growing faster than potential output. Quite a mixed message there for markets for the end of the week to digest. The NZD has fared worse overall over the last few sessions post a dovish RBNZ yesterday. The market fully expects them to raise rates in March, but the rhetoric didn’t reflect the expectations for a bank that is about to embark on an aggressive tightening cycle. And that’s what is priced in.
NZD/USD Levels
The 20 DMA is 0.8286, the 50 DMA is 0.8242 and the 200 DMA is 0.8143. RSI (14) reads 50.70. Supports are ascending from 0.8037, 0.8084, 0.8119. Spot is 0.8151 while resistances are 0.8190, 0.8221, 0.8305, 0.8320 and 0.8346.