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7 Oct 2013
NZD/USD is weighed by risk aversion, but where next?
FXstreet.com (London) - The NZD/USD has been trading between the channel of around 80 pips since the middle of last weeks session.
Today the NZD/USD opened below 0.8280 weighed by risk aversion, but has since gained the 0.8300 handle again and has closed the gap in NA markets. TD Securities research teams explained that the broader sense of risk aversion (lower equities, wider spreads in fixed income, and generally underperforming ‘high beta’ currencies) has weighed on the NZD. “Comments from New Zealand Finance Minister reiterating that the NZD at current levels remains ‘too high’ and a ‘headwind for the export sector’ have added to the pressure at the start of the week. Regardless of domestic concerns however, unfolding of US political events should be the dominant force for the NZD for the coming week”.
NZD/USD Levels
The 20 DMA is 0.8246, the 50 DMA is 0.8049 and the 200 DMA is 0.8182. RSI (14) reads 61.51. Supports are ascending from 0.8228, 0.8240, 0.8258, 0.8276 and 0.8310. Spot is currently 0.8328 while resistances are 0.8352, 0.8374, 0.8390 and 0.8436.
Today the NZD/USD opened below 0.8280 weighed by risk aversion, but has since gained the 0.8300 handle again and has closed the gap in NA markets. TD Securities research teams explained that the broader sense of risk aversion (lower equities, wider spreads in fixed income, and generally underperforming ‘high beta’ currencies) has weighed on the NZD. “Comments from New Zealand Finance Minister reiterating that the NZD at current levels remains ‘too high’ and a ‘headwind for the export sector’ have added to the pressure at the start of the week. Regardless of domestic concerns however, unfolding of US political events should be the dominant force for the NZD for the coming week”.
NZD/USD Levels
The 20 DMA is 0.8246, the 50 DMA is 0.8049 and the 200 DMA is 0.8182. RSI (14) reads 61.51. Supports are ascending from 0.8228, 0.8240, 0.8258, 0.8276 and 0.8310. Spot is currently 0.8328 while resistances are 0.8352, 0.8374, 0.8390 and 0.8436.