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13 May 2015
NZD/USD: A sellers opportunity?
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7485 with a high of 0.7506 and a low of 0.7316.
NZD/USD is running into resistance in this zone where we meet the 0.75 round figure and where the current downtrend had been negated. The greenback is on the back foot and this is allowing the Kiwi to take flight yet again. The RBNZ recently attempted to jawbone the currency in its recent Financial Stability Report, however, there was not enough emphasis or strong language to convince markets that the Central Bank would be ready to act on the price of the currency alone.
Kit Jukes, chief currency strategist at Societe Generale remains bearish on the Kiwi and said the bounce in commodity prices is helping calm markets but the Chinese slowdown will continue to act as a an anchor.
"It rather sums up the current market mood that people are being taken by surprise, by the bounce in oil, copper, or iron ore prices. All have seen extremely sharp falls in recent months - and big falls since prices peaked - and they could bounce a fair bit more without telling us much about longer term trends. A 50% retracement of the fall in oil prices takes WTI to 75, while copper prices may be testing the upper end of the post-2011 downtrend, but they have retraced less than a quarter of that fall."
NZD/USD is running into resistance in this zone where we meet the 0.75 round figure and where the current downtrend had been negated. The greenback is on the back foot and this is allowing the Kiwi to take flight yet again. The RBNZ recently attempted to jawbone the currency in its recent Financial Stability Report, however, there was not enough emphasis or strong language to convince markets that the Central Bank would be ready to act on the price of the currency alone.
Kit Jukes, chief currency strategist at Societe Generale remains bearish on the Kiwi and said the bounce in commodity prices is helping calm markets but the Chinese slowdown will continue to act as a an anchor.
"It rather sums up the current market mood that people are being taken by surprise, by the bounce in oil, copper, or iron ore prices. All have seen extremely sharp falls in recent months - and big falls since prices peaked - and they could bounce a fair bit more without telling us much about longer term trends. A 50% retracement of the fall in oil prices takes WTI to 75, while copper prices may be testing the upper end of the post-2011 downtrend, but they have retraced less than a quarter of that fall."