NZD/USD testing support at 0.6900

The Kiwi dollar is trading on a negative note today, sending NZD/USD to challenge the critical support at 0.6900 the figure.

NZD/USD retreats from YTD peaks

After hitting fresh multi-month highs around 0.6970 on Wednesday (last seen in id-June 2015), spot has surrendered part of those gains and has returned to the 0.6900 neighbourhood early in the European morning.

A continuation of USD weakness remains the exclusive driver behind the pair’s recent upside, along with a better tone in the commodity-space.

NZD/USD relevant levels

As of writing the pair is losing 0.27% at 0.6902 facing the next hurdle at 0.6964 (2016 high Mar.30) ahead of 0.7234 (monthly high Jun.10 2015) and finally 0.7631 (monthly high May.1 2015). On the other hand, a breach of 0.6754 (20-day sma) would expose 0.6667 (low Mar.28) and finally 0.6612 (200-day sma).

Mar 31, 2016

Brazil fiscal policy continues deteriorating – Deutsche Bank

Research Team at Deutsche Bank, notes that the Brazil’s public sector posted a consolidated primary deficit of BRL23bn in February, in line with their forecast of BRL22bn (which was revised following the publication of the much larger-than-expected above-the-line central government deficit yesterday).

CNH to weaken against JPY but may gain in others – ANZ

Irene Cheung, Senior FX Strategist, suggests that as China undergoes FX reforms and puts more emphasis on the RMB basket, they expect CNH to underperform some currencies in the basket whilst outperforming others.