6 May 2015
NZD/USD: A clear turn around below trend line
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7493 with a high of 0.7571 and a low of 0.7459.
NZD/USD bears are back in force, rejecting the efforts of the bulls from the depths below the 0.75 handle and pushes the bird back below the figure on the basis of a bearish outlook for the economy in New Zealand. Commodity prices, specifically dairy, are weighing on the bird with Fonterra’s GlobalDairyTrade auction prices hitting a 5 year low. This coupled with the release of the NZ Q1 unemployment data overnight showing an unexpected increase of 5.8% has increased sentiment for a rate cut to come from the RBNZ later this year.
The RBNZ only recently came out with a statement and said, “It would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target.” Technically, we are in a clear turn around with the potential of a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.
NZD/USD bears are back in force, rejecting the efforts of the bulls from the depths below the 0.75 handle and pushes the bird back below the figure on the basis of a bearish outlook for the economy in New Zealand. Commodity prices, specifically dairy, are weighing on the bird with Fonterra’s GlobalDairyTrade auction prices hitting a 5 year low. This coupled with the release of the NZ Q1 unemployment data overnight showing an unexpected increase of 5.8% has increased sentiment for a rate cut to come from the RBNZ later this year.
The RBNZ only recently came out with a statement and said, “It would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target.” Technically, we are in a clear turn around with the potential of a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.