NZD/USD still lower for the session despite bounce off the lows. A sellable bounce?

FXstreet.com (Barcelona) - The NZD/USD sold off following the Reserve Bank of New Zealand’s interest rate decision and accompanying commentary. The kiwi has bounced off the session lows but may be poised for another downside try following lower than expected business confidence data.

NZD/USD traders to focus on US data later on this session

The NZD/USD cross took a fairly sharp dive following the RBNZ’s decision to leave interest rates unchanged – perhaps a reflection of some built-in expectations of more hawkishness from the bankers. Technicians say the upside off the session lows may have been a corrective bounce leading up to more downside – only time will tell.

During Thursday’s session, NZD/USD traders will be reacting to US Weekly Jobless Claims and Chicago PMI.

Technical outlook for NZD/USD

Technicians say NZD/USD is facing very short-term “correction resistance” of 0.8263. Above that comes additional resistance at Wednesday’s high of 0.8280. Support for the cross comes in at the “correction support” and downside target for this move at 0.8220.

Stagnant Japanese wages to put a cap on inflation

The set of economic and fiscal reforms announced by Japanese Prime Minister Shinzo Abe this year are still having no effect to encourage a rise in the paycheck by Japanese companies. Today, it was confirmed that Japan’s salaries slid the most since 2010, making the prospects of inflation look harder to be achieved.
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EUR/USD retesting 1.37 support, bears in control

The EUR/USD is extends its losses along Asia, currently testing bids at the 1.37 handle, exact same area where it stalled post FOMC, representing a technical support aligning with Oct 18 peak.
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