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24 Feb 2014
NZD/USD caught up on fundamentals ahead of 0.8400
FXStreet (Guatemala) - The NZD/USD is attempting the upside being held up at resistance through 0.8340. The pair is trapped between fundamentals between the US and the Eastern effecting economies making this a neutral play ahead of 0.8400.
Imre Speizer, Westpac Banking Corporation ABN strategist noted the slowdown in China’s growth has hurt the NZD but on the flip side, a soggy patch of US economic data has weighed on the US dollar. “US data is likely to continue to disappoint during the weeks ahead. Moreover, Chinese data should be approaching a turning point. That should eventually benefit NZD/USD, such that by the time the RBNZ starts hiking the OCR (13 March we expect) it should be on the road towards 0.8545 (the October high). The main risks to our bullish outlook include another emerging markets shock, and US economic fundamentals exceeding our expectations”.
NZD/USD Levels
The 20 DMA is 0.8259, the 50 DMA is 0.8257 and the 200 DMA is 0.8132. RSI (14) reads 70.02. Supports are ascending from 0.8187, 0.8212, 0.8223, and 0.8280. Spot is 0.8340 while resistances are 0.8354, 0.8393 and 0.8433.
Imre Speizer, Westpac Banking Corporation ABN strategist noted the slowdown in China’s growth has hurt the NZD but on the flip side, a soggy patch of US economic data has weighed on the US dollar. “US data is likely to continue to disappoint during the weeks ahead. Moreover, Chinese data should be approaching a turning point. That should eventually benefit NZD/USD, such that by the time the RBNZ starts hiking the OCR (13 March we expect) it should be on the road towards 0.8545 (the October high). The main risks to our bullish outlook include another emerging markets shock, and US economic fundamentals exceeding our expectations”.
NZD/USD Levels
The 20 DMA is 0.8259, the 50 DMA is 0.8257 and the 200 DMA is 0.8132. RSI (14) reads 70.02. Supports are ascending from 0.8187, 0.8212, 0.8223, and 0.8280. Spot is 0.8340 while resistances are 0.8354, 0.8393 and 0.8433.