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NZD/USD spikes to 0.8125 on RBNZ

FXstreet.com (London) - NZD/USD spiked over 40 pips on the release of the awaited RBNZ, leaving rates on hold.

The pair has been extending its advance from depths of 0.7880 territory following last weeks disappointment in NFP’s from the US. Meanwhile, the pair will now be subject to the raft of data form the US towards the end of the week and of course tensions over Syria are still effecting the dollar. The FOMC is on the cards also with tapering in loom; “Bernanke must manage tapering in way that soothes and avoids a riot in bond markets. Forward guidance and communication are key as 2016 SEP forecasts loom. Unemployment threshold set to be lowered”, said Eric Green, Global Head Rates, FX & Commodity Research at TD Securities.

NZD/USD Levels

The 20 DMA is .7910, the 50 DMA is 7917 and the 200 DAM is .8187. RSI (14) reads 66.99. Supports are ascending from .7928 .7960, .8015, .8032 .8040, and 80.80. Spot is currently 0.8120 while resistances are .8129, .8165 and .8173.

RBNZ Wheeler press conference: If loan limits not effective, will have to rethink...

Additional comments by the RBNZ Governor Wheeler, at the post RBNZ monetary policy press conference, are hitting the wires, with a recap below.
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RBNZ communicates it wants to hike rates, NZD up another 3 to 5%?

In a very explicit fashion, the Reserve Bank of New Zealand said "rates hikes will be requited in 2014, with the extent and timing of the rise in policy rates will depend largely on the degree to which the momentum in the housing market and construction sector spills over into broader demand and inflation pressures raise interest rates."
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