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9 Oct 2013
NZD/USD flat after an initial spike on early Asian trading
FXstreet.com (Athens) – The NZD/USD is hovering at approximately the same area as it was at the initial kick off of the Asian trading session, paring all of its gains on “Yellen news” potential nomination, as well as on a glimpse of hope on US debt.
NZD/USD flat as Yellen’s ‘glitter’ fades away and the US debt impasse is still ongoing
The NZD/USD traded mostly sideways in the kick off of the early Asian trading session, but as soon as news wires reported that President of US Obama will nominate Dr. Janet Yellen as Chair of the Board of Governors of the Fed, the “kiwi” spiked on the 0.8317 area. However, the cross boosting on a “glitter” of hope on a resolution on the US debt default drama as well as on super dovish Yellen potential nomination didn’t last for long; the cross soon pared its earlier gains and now trades again at its initial trading area at the start of the Asian trading session. What’s more, traders interested in the cross should bear in mind that at 21.30 GMT hours the NZD PMI will be released.
Technical Outlook on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. Ahead, our personal technical perspective indicates that the pair might trade in short-term between the 0.8250-0.8350 levels, but investors should be very cautious on the fact that the four days sequence of lower highs, might potentially lead to a downtrend of the cross. At the time of writing the cross is trading at 0.8281, down 0.06%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445
NZD/USD flat as Yellen’s ‘glitter’ fades away and the US debt impasse is still ongoing
The NZD/USD traded mostly sideways in the kick off of the early Asian trading session, but as soon as news wires reported that President of US Obama will nominate Dr. Janet Yellen as Chair of the Board of Governors of the Fed, the “kiwi” spiked on the 0.8317 area. However, the cross boosting on a “glitter” of hope on a resolution on the US debt default drama as well as on super dovish Yellen potential nomination didn’t last for long; the cross soon pared its earlier gains and now trades again at its initial trading area at the start of the Asian trading session. What’s more, traders interested in the cross should bear in mind that at 21.30 GMT hours the NZD PMI will be released.
Technical Outlook on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. Ahead, our personal technical perspective indicates that the pair might trade in short-term between the 0.8250-0.8350 levels, but investors should be very cautious on the fact that the four days sequence of lower highs, might potentially lead to a downtrend of the cross. At the time of writing the cross is trading at 0.8281, down 0.06%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445