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9 Sep 2015
NZD/USD: Calm before a storm, wavers below 0.6400
FXStreet (Mumbai) - The New Zealand dollar was seen clinching gains versus its American counterpart ahead of US open, with NZD/USD consolidating below 0.64 handle.
NZD/USD awaits RBNZ
Currently, the NZD/USD pair trades 0.63% higher at 0.6383, keeping range below 0.6400 since Asia. The Kiwi keeps composure during the European trading and remains lifted amid lack off fresh fundamental triggers as attention now turns towards the Reserve Bank of New Zealand (RBNZ) rate decision due tomorrow.
While the Kiwi also retains gains as the persisting risk-sentiment continue to boost the demand for higher yielding assets. Meanwhile, markets now await Bank of Canada’s (BOC) rate decision which may provide further cues on the commodity currency ahead of Thursday’s RBNZ monetary policy statement.
Analysts at Bank of Tokyo-Mitsubishi noted, “The consensus for the RBNZ tonight is for a cut. The RBNZ’s estimate for real GDP and inflation are perhaps too high and lower forecasts are likely. NZD/USD is about 3.5% lower since the start of August so an expectation of easing in response to the upturn in financial market turmoil is probably in the price and a strong signal to ease again would be required to push the NZD/USD much lower still."
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6402 (Today’s High) levels and above which it could extend gains 0.6481 (Aug 31 High) levels. To the downside immediate support might be located at 0.6328 (Sept 3 Low) below that at 0.6268 (Sept 4 Low).
NZD/USD awaits RBNZ
Currently, the NZD/USD pair trades 0.63% higher at 0.6383, keeping range below 0.6400 since Asia. The Kiwi keeps composure during the European trading and remains lifted amid lack off fresh fundamental triggers as attention now turns towards the Reserve Bank of New Zealand (RBNZ) rate decision due tomorrow.
While the Kiwi also retains gains as the persisting risk-sentiment continue to boost the demand for higher yielding assets. Meanwhile, markets now await Bank of Canada’s (BOC) rate decision which may provide further cues on the commodity currency ahead of Thursday’s RBNZ monetary policy statement.
Analysts at Bank of Tokyo-Mitsubishi noted, “The consensus for the RBNZ tonight is for a cut. The RBNZ’s estimate for real GDP and inflation are perhaps too high and lower forecasts are likely. NZD/USD is about 3.5% lower since the start of August so an expectation of easing in response to the upturn in financial market turmoil is probably in the price and a strong signal to ease again would be required to push the NZD/USD much lower still."
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6402 (Today’s High) levels and above which it could extend gains 0.6481 (Aug 31 High) levels. To the downside immediate support might be located at 0.6328 (Sept 3 Low) below that at 0.6268 (Sept 4 Low).