28 Jun 2013
NZD/USD above 0.78, joins 'risk on' party
FXstreet.com (Barcelona) - The NZD/USD, emboldened by the flurry of bids in the Shanghai index - up 1.2% from -0.8% - has managed to move vigorously away from 0.7755 lows to presently exchange hands at 0.7812, session highs.
Increase in risk appetite courtesy of the Shanghai index
The strong rebound in the Shanghai index has been the main catalyst for the Kiwi and other risk-related assets to take off. As explained jut minutes ago by the Governor of the People's Bank of China Mr. Zhou, pointing at the growing influence of the Shanghai stock indices as a sentiment indicator for Asia. Traders pay now much more attention over the strengthening positive correlation between the Shanghai equities and risk assets performance, as China liquidity issues recently took centre stage.
Next hurdles to the upside
As the Kiwi surges, Jim Langlands, Founder of FX Charts Pty, notes "On the topside 0.7850 looks toppish still, but a break would take the Kiwi towards 0.7900 and possibly to 0.7915 (23.6% of 0.0.8675/0.7682) which is where the top of the current channel currently lies and if seen would be a good level to join the offers with a SL place above 0.7950."
Increase in risk appetite courtesy of the Shanghai index
The strong rebound in the Shanghai index has been the main catalyst for the Kiwi and other risk-related assets to take off. As explained jut minutes ago by the Governor of the People's Bank of China Mr. Zhou, pointing at the growing influence of the Shanghai stock indices as a sentiment indicator for Asia. Traders pay now much more attention over the strengthening positive correlation between the Shanghai equities and risk assets performance, as China liquidity issues recently took centre stage.
Next hurdles to the upside
As the Kiwi surges, Jim Langlands, Founder of FX Charts Pty, notes "On the topside 0.7850 looks toppish still, but a break would take the Kiwi towards 0.7900 and possibly to 0.7915 (23.6% of 0.0.8675/0.7682) which is where the top of the current channel currently lies and if seen would be a good level to join the offers with a SL place above 0.7950."