3 Dec 2014
NZD/USD bears stacking up for re-run Nov lows
FXStreet (Guatemala) - NZD/USD is trading at 0.7776, down -0.38% on the day, having posted a daily high at 0.7810 and low at 0.7756.
The NZD/USD continues lower on the week yet has started to stabalise after printing fresh lows with a greenback that is defiant in the face of weaker than expected ADP jobs data and scoring its highest level against a basket of six major currencies in the DXY since 2009. On the daily chart, there is little sign of reversal and the pair is creeping up on 0.7720 ahead of deeper downside to test November lows now that it has penetrated down though the 0.78 psychological and strong September / November support.
In respect of the Kiwi, it is stronger than what the RBNZ would like still although the “real effective exchange rate remains unjustified and unsustainable”, according to wheeler in his last speech, there is “little the RBNZ can do to sustainably alleviate an overvalued real exchange rate”.
However, with a continued rally in the greenback on global fundamentals and with the commodity prices performances of late, (especially milk and dairy prices with the recent CDT price -1.1% vs -3.1% previous and whole milk powder -7.1%), there could be some relief in this department for the RBNZ into 2015 who have not been sighted to need to act until the end of next year in respect of their inflation target which is said by the Central Bank that it still remains appropriate.
NZD/USD support and levels to the downside
Next support to the downside can be found at 0.7764 (Daily Classic S1), 0.7760 (Weekly Classic S1), 0.7756 (Daily Low), 0.7720 (Daily Classic S2) and 0.7693 (Nov Low).
The NZD/USD continues lower on the week yet has started to stabalise after printing fresh lows with a greenback that is defiant in the face of weaker than expected ADP jobs data and scoring its highest level against a basket of six major currencies in the DXY since 2009. On the daily chart, there is little sign of reversal and the pair is creeping up on 0.7720 ahead of deeper downside to test November lows now that it has penetrated down though the 0.78 psychological and strong September / November support.
In respect of the Kiwi, it is stronger than what the RBNZ would like still although the “real effective exchange rate remains unjustified and unsustainable”, according to wheeler in his last speech, there is “little the RBNZ can do to sustainably alleviate an overvalued real exchange rate”.
However, with a continued rally in the greenback on global fundamentals and with the commodity prices performances of late, (especially milk and dairy prices with the recent CDT price -1.1% vs -3.1% previous and whole milk powder -7.1%), there could be some relief in this department for the RBNZ into 2015 who have not been sighted to need to act until the end of next year in respect of their inflation target which is said by the Central Bank that it still remains appropriate.
NZD/USD support and levels to the downside
Next support to the downside can be found at 0.7764 (Daily Classic S1), 0.7760 (Weekly Classic S1), 0.7756 (Daily Low), 0.7720 (Daily Classic S2) and 0.7693 (Nov Low).