11 Mar 2015
NZD/USD: Making attempts at the 0.7280 resistance
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7279 with a high of 0.7285 and a low of 0.7262.
NZD/USD is staging attempts to protect the downside and on the near term price action, the momentum to the downside os fading out with a push through 0.7275 and some choppiness until able to move up to test the round 0.7280 resistance. Meanwhile, the main theme is off dollar strength and it is unlikely that we will see anything significant moving against the trend while the RBNZ lingers in the near distance, with the majority of the market not expecting action.
However, analysts at TD Securities explained that they still like their out-of-consensus call for a 25bp cut in the OCR to 3.25% on Thursday. "Like the RBA in February the Bank can use the accompanying Monetary Policy statement to justify the decision. The RBNZ on hold at a lofty 3.5% will merely fuel the already lofty NZD (against USD and on a TWI basis) given the obviously benefits of the carry trade."
NZD/USD is staging attempts to protect the downside and on the near term price action, the momentum to the downside os fading out with a push through 0.7275 and some choppiness until able to move up to test the round 0.7280 resistance. Meanwhile, the main theme is off dollar strength and it is unlikely that we will see anything significant moving against the trend while the RBNZ lingers in the near distance, with the majority of the market not expecting action.
However, analysts at TD Securities explained that they still like their out-of-consensus call for a 25bp cut in the OCR to 3.25% on Thursday. "Like the RBA in February the Bank can use the accompanying Monetary Policy statement to justify the decision. The RBNZ on hold at a lofty 3.5% will merely fuel the already lofty NZD (against USD and on a TWI basis) given the obviously benefits of the carry trade."