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13 Apr 2015
NZD/USD: Bulls buying in to weakness at key support
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7529 with a high of 0.7538 and a low of 0.7514.
NZD/USD bulls are attempting some ground and buying in to weakness that came of last week's business with a triple top at the 0.7600 mark. Support comes at 0.7520 in the main while major risk is to the downside on a bearish bias that could see the pair down to the 0.7480 mark. With any follow through, there is little space right down to the 0.7390/00.
There is a good deal of data to come from the US this week, including CPI's and such data will go towards the markets sentiment and judgement for when the Fed are likely to hike interest rates. However, it is not necessarily a given that the dollar will continue to strengthen. Analysts at HSBC reminded that on each of the four previous tightening cycles seen in the past 30 years, the USD has fallen in the period immediately after the first rate rise. "This "buy the rumour, sell the fact" behaviour during a tightening cycle suggests that one should be cautious about expecting too much in the way of further USD strength should the Fed move to raise rates later this year."
NZD/USD bulls are attempting some ground and buying in to weakness that came of last week's business with a triple top at the 0.7600 mark. Support comes at 0.7520 in the main while major risk is to the downside on a bearish bias that could see the pair down to the 0.7480 mark. With any follow through, there is little space right down to the 0.7390/00.
There is a good deal of data to come from the US this week, including CPI's and such data will go towards the markets sentiment and judgement for when the Fed are likely to hike interest rates. However, it is not necessarily a given that the dollar will continue to strengthen. Analysts at HSBC reminded that on each of the four previous tightening cycles seen in the past 30 years, the USD has fallen in the period immediately after the first rate rise. "This "buy the rumour, sell the fact" behaviour during a tightening cycle suggests that one should be cautious about expecting too much in the way of further USD strength should the Fed move to raise rates later this year."