16 Jun 2014
NZD/USD well bid ahead of Tokyo, 0.87 resistance key
FXStreet (Bali) - NZD/USD is trading higher in the early going of the Asian session, presently at 0.8670, with the sticky 0.87 resistance still seen as the main challenge for bulls ahead.
The smart money has been busy biding the NZ Dollar over the past few days, following a hawkish statement by RBNZ Governor Mr. Wheeler on Thursday, after delivering another rate hike to 3.25%. Wheeler's comments have shaken market expectations for a potential hike in the OCR by July instead of what was expected to be a next move in Sept.
Technically, it is crucial that bulls overtake the 0.87 handle, should they aim for further progress towards 0.8750/70. Note that the FOMC risk event later on the week may temper any strong commitment to play longs the pair amid uncertainty over what the Fed's view on rate hikes will be this time around. On the downside, bids are seen circa 0.8650 and after down at 0.8610/0.86.
The smart money has been busy biding the NZ Dollar over the past few days, following a hawkish statement by RBNZ Governor Mr. Wheeler on Thursday, after delivering another rate hike to 3.25%. Wheeler's comments have shaken market expectations for a potential hike in the OCR by July instead of what was expected to be a next move in Sept.
Technically, it is crucial that bulls overtake the 0.87 handle, should they aim for further progress towards 0.8750/70. Note that the FOMC risk event later on the week may temper any strong commitment to play longs the pair amid uncertainty over what the Fed's view on rate hikes will be this time around. On the downside, bids are seen circa 0.8650 and after down at 0.8610/0.86.