FXStreet (Guatemala) – NZD/USD bulls persist and the bird keeps gaining demand on the 0,66 handle after a spell at oscillating there after the first bid came on before the Chinese PMI data where services surprised to the upside.
The bird has been in recovery mode since 0.6520 at the start of the week and is denying gravity on stops triggered. However, with an easing bias from the RBNZ expected, the downside could come back into vogue, especially with the potential of normalisation of rates from the Fed this month.
The markets is however already very long the greenback and there could be an argument for buy the rumour sell the fact on the outcome of the FOMC meeting. Meanwhile, the Nonfarm Payrolls will up this week and a key gauge in respect of the FOMC. Later today, more direct for the bird, the dairy auction and the GDT price index could be a catalyst for the kiwi in the meantime.
NZD/USD levels
NZD/USD is at an interesting level on the 0.66 handle, challenging the 200 SMA on the 4hr chart and the 100 SMA on the 8hr chart while the daily DMA’s offer a bullish scenario with the 9 DMA up through the 20 DMA as price trades through the 50 DMA at 0.6589. 0.6780 is the key resistance as the high for Nov ahead of the psychological 0.68 level.
(Market News Provided by FXstreet)