1 Jul 2013
NZD/USD, clean break above 0.7750
FXstreet.com (Barcelona) - NZD/USD is trading away from its 1-hour congestive range, last at 0.7763 after breaking away from 0.7750 static resistance, which converged with the 20-hourly MA.
Kiwi aided by local bonds demand
The NZD/USD, highest for the session at 0.7770, is following the tail of the Aussie, which shrugged off poor Chinese PMIs, to currently trade at 0.9170 day highs. The Shanghai SE Composite Index, almost flat after a slight fall at the open, coupled with technicals screaming 'a correction is needed', and demand for local bonds returning, appear to be supporting the Kiwi.
Speculative accounts selling
In view of Sean Lee, Founder at FXWW, the Kiwi starts to look good on the crosses, adding that "Most recent falls have been in overnight trade, which suggests to me that speculative accounts are still selling, thereby increasing the chances of some sharp short-covering rallies." Lee suggests to those NZD bulls that the AUD/NZD looks like the ‘safest’ play.
Kiwi aided by local bonds demand
The NZD/USD, highest for the session at 0.7770, is following the tail of the Aussie, which shrugged off poor Chinese PMIs, to currently trade at 0.9170 day highs. The Shanghai SE Composite Index, almost flat after a slight fall at the open, coupled with technicals screaming 'a correction is needed', and demand for local bonds returning, appear to be supporting the Kiwi.
Speculative accounts selling
In view of Sean Lee, Founder at FXWW, the Kiwi starts to look good on the crosses, adding that "Most recent falls have been in overnight trade, which suggests to me that speculative accounts are still selling, thereby increasing the chances of some sharp short-covering rallies." Lee suggests to those NZD bulls that the AUD/NZD looks like the ‘safest’ play.