13 Nov 2013
NZD/USD pares Tuesday’s losses post ‘familiar’ FSR
FXstreet.com (Athens) – The NZD/USD pared a large portion of its yesterday’s losses during the Asian trading period and is steadily trending higher ahead of the European trading session.
The NZD/USD managed not only to pare a large portion of its gains, but also to get rid out of the immense volatility that had been trapped on Tuesday. Briefly, the kiwi is trending slightly higher today maybe due to the fact that RBNZ’s governor Wheeler yesterday’s comments were at a large extent interpreted by traders as a sign that RBNZ has still enough room to hold increasing interest rates at the early of 2014. Last but not least, worries on the second’s largest economy growth will continue to weigh on the kiwi, while the next major data event risk is due on Thursday (NZD retail sales).
Technical Perspectives on the NZD/USD
Traders should pay attention to the initial support of 0.8200, followed by the 200-Daily MA at 0.8170. In a case the 0.8170 level is decently breached, then the cross might be dragged further downwards, near the 0.8108 (50% Fibonacci retracement of the August-October rally). On the other hand, the AUD/NZD slippage adds solid support to the kiwi, as well as the fact that the post RBNZ FSR induced kiwi’s shorts to be largely trimmed. Jacqui Douglas, Senior Global Strategist on behalf of TD Securities, ahead of Thursday’s retail sales mentions that “We expect nominal retail sales (Thu) to lift by a decent +1.5%/qtr for Q3 and volumes to rise by +1%/qtr (mkt +0.9%).”
The NZD/USD managed not only to pare a large portion of its gains, but also to get rid out of the immense volatility that had been trapped on Tuesday. Briefly, the kiwi is trending slightly higher today maybe due to the fact that RBNZ’s governor Wheeler yesterday’s comments were at a large extent interpreted by traders as a sign that RBNZ has still enough room to hold increasing interest rates at the early of 2014. Last but not least, worries on the second’s largest economy growth will continue to weigh on the kiwi, while the next major data event risk is due on Thursday (NZD retail sales).
Technical Perspectives on the NZD/USD
Traders should pay attention to the initial support of 0.8200, followed by the 200-Daily MA at 0.8170. In a case the 0.8170 level is decently breached, then the cross might be dragged further downwards, near the 0.8108 (50% Fibonacci retracement of the August-October rally). On the other hand, the AUD/NZD slippage adds solid support to the kiwi, as well as the fact that the post RBNZ FSR induced kiwi’s shorts to be largely trimmed. Jacqui Douglas, Senior Global Strategist on behalf of TD Securities, ahead of Thursday’s retail sales mentions that “We expect nominal retail sales (Thu) to lift by a decent +1.5%/qtr for Q3 and volumes to rise by +1%/qtr (mkt +0.9%).”