NZD/USD stars in an otherwise lackluster week
Fawad Razaqzada December 15, 2017 7:41 AM
This week’s clear winner in the FX markets has been the New Zealand dollar. It jumped after NZ Superannuation Fund Chief Adrian Orr was named as next governor of the Reserve Bank of New Zealand.
This week’s clear winner in the FX markets has been the New Zealand dollar. It jumped after NZ Superannuation Fund Chief Adrian Orr was named as next governor of the Reserve Bank of New Zealand. Many regard him as a seasoned veteran who is well known by the business community. He may possibly be more hawkish than his predecessor, too.
The kiwi will remain in focus next week as we will have important data from both New Zealand and the US. From NZ, the data include ANZ Business Confidence, GDT Price Index and third quarter GDP, while from the US we will also have Q3 GDP, only this is the final estimate and thus unlikely to have a big impact on the dollar. In addition to GDP, we will also have some US housing market and consumer spending data, as well durable goods orders and core PCE Price Index.
But after this week’s big rally the downtrend may have ended for the kiwi, as price has created a higher high above the most recent swing high of 0.6980, a level which was also defended on the pullback. The NZD/USD had already made a higher low after creating a false break reversal pattern beneath the May 2017 low of 0.6820 in mid-November.
If the uptrend could be maintained then the next potential resistance and thus a bullish objective would be at 0.7055, and old support level. Beyond this, the bulls may aim for 0.7120 next. On the downside, 0.6980 is the key support to watch – a potential break back below here could lead to a drop to the next support at 0.6950.
Source: eSignal and FOREX.com
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.