18 Sep 2013
NZD/USD eyes 0.8400 handle on dovish FED
FXstreet.com (London) - NZD/USD eyes the 0.8400 handle having reached 0.8378 and still attracts bids above 0.8360.
"The bird" is benefitting from a broad based dollar sell off, extending it’s losses of this weeks markets positioning leading up to the key event of the year so far. The FED held its position and Bernanke’s press conference and statements on behalf of the FOMC was very dovish. The recent data has been coming in weaker than expected and some participants had predicted a no change to their policy, but overall this has come as a shock to the markets. Markets had been pricing in a dovish tone from the FOMC but expected to see tapering between $5B - $15B cut in monthly QE purchases. The markets now fear Yellen’s possible arrival to add more fuel to the dollars fire that could make Benranke look like a hawk. She once said, if she could vote, she would vote for negative rates.
NZD/USD Levels
NZD/USD eyes the 0.8400 handle, although RSI (14) reads 87.76 in over bought territory. Resistance at 0.8400 as a psychological level take us back to April support before further resistances at 0.8450, 0.8480.
"The bird" is benefitting from a broad based dollar sell off, extending it’s losses of this weeks markets positioning leading up to the key event of the year so far. The FED held its position and Bernanke’s press conference and statements on behalf of the FOMC was very dovish. The recent data has been coming in weaker than expected and some participants had predicted a no change to their policy, but overall this has come as a shock to the markets. Markets had been pricing in a dovish tone from the FOMC but expected to see tapering between $5B - $15B cut in monthly QE purchases. The markets now fear Yellen’s possible arrival to add more fuel to the dollars fire that could make Benranke look like a hawk. She once said, if she could vote, she would vote for negative rates.
NZD/USD Levels
NZD/USD eyes the 0.8400 handle, although RSI (14) reads 87.76 in over bought territory. Resistance at 0.8400 as a psychological level take us back to April support before further resistances at 0.8450, 0.8480.