FXStreet (Guatemala) – NZD/USD is currently trading at 0.6531 with a high of 0.6535 and a low of 0.6530.
NZD/USD remains consolidated after the sell-off after the Nonfarm Payrolls last week in a continuation of the birds downtrend. NZD/USD dropped the half way half of the 0.66 handle after making a low of 0.6498 while 0.6785 where the highs in November so far left behind on fundamentals on both the New Zealand economy and the divergence between the Fed and the RBNZ.
The RBNZ have been tipped for a rate cut while the markets are pricing in a 70% chance that the Fed will indeed start to normalise rates as soon as December. This week will be key with Fed speakers, including Yellen, while New Zealand releases key data this week with the RBNZ’s Financial stability report and RBNZ’s Governor Wheeler’s speech.
NZD/USD levels
Technically, daily RSI (14) is leaving further room to the downside while the bird is pressured back towards the 55 DMA at 0.6515. 0.6420 is a key supporting area that if broken could open the downside back towards towards the September lows and moving back ion a continuation of the late April highs and downside. Recoveries will need to find territory above the 200 DMA at 0.6988 to alleviate immediate downside pressures.
(Market News Provided by FXstreet)