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20 Feb 2014
NZD/USD making a come back towards 0.8300
FXStreet (Guatemala) - After a steep decline from over 0.8340 into the 0.8240’s, NZD/USD has managed a come back and is targeting the 0.83 handle with a temporary breach there in Europe.
The landslide came as China disappointed again and RBS strategists explained that on Tuesday, “Asian currencies were weaker on concern over a Chinese liquidity withdrawal lifting Chinese short term rates from recent low levels suggesting they were re-tightening policy after the Chinese New Year break. On Wednesday, Chinese interest rates eased back and the equity market rebounded, but the recovery in Asian currencies, the NZD was relatively muted suggesting the market remains more sensitive to downside risks in China”. They further added however that New Zealand data keeps the RBNZ on track to hike next month, but said, “rate hike expectations remain elevated with 120bp priced over 12 months and 175bp over 2 years. As such rates falls may result if the EM market fears continue top build”.
NZD/USD Levels
The 20 DMA is 0.8255, the 50 DMA is 0.8256 and the 200 DMA is 0.8130. RSI (14) reads 54.56. Supports are ascending from 0.8163, 0.8187, 0.8210 and 0.8223. Spot is 0.8285, 0.8302, 0.8343, 0.8393 and 0.8433.
The landslide came as China disappointed again and RBS strategists explained that on Tuesday, “Asian currencies were weaker on concern over a Chinese liquidity withdrawal lifting Chinese short term rates from recent low levels suggesting they were re-tightening policy after the Chinese New Year break. On Wednesday, Chinese interest rates eased back and the equity market rebounded, but the recovery in Asian currencies, the NZD was relatively muted suggesting the market remains more sensitive to downside risks in China”. They further added however that New Zealand data keeps the RBNZ on track to hike next month, but said, “rate hike expectations remain elevated with 120bp priced over 12 months and 175bp over 2 years. As such rates falls may result if the EM market fears continue top build”.
NZD/USD Levels
The 20 DMA is 0.8255, the 50 DMA is 0.8256 and the 200 DMA is 0.8130. RSI (14) reads 54.56. Supports are ascending from 0.8163, 0.8187, 0.8210 and 0.8223. Spot is 0.8285, 0.8302, 0.8343, 0.8393 and 0.8433.