FXStreet (Guatemala) – NZD/USD is currently trading at 0.6780 with a high of 0.6785 and a low of 0.6729.
NZD/USD is fittingly bid after the All Blacks‘ World Cup Rugby victory over the weekend with the bird taking a victory flight in the same fashion as Dan Carter‘s stunning dropkick above the 200 SMA cross-bar through the hourly sticks.
However, unlike the All Blacks, the perpetuation of the cloud nine sensations of such a victory in the economy may only last so long and may even be shorter lived through the price of the bird as we press on and get back to the training ground while looking forward again with the challenges that lie ahead for the RBNZ seeking a lower exchange rate.
China may continue to bring on the heat at the break-downs for the RBNZ as they try to emerge from the scrummages with the ball in hand without displaying any knock on’s as they battle to keep the line of inflation straight and elevated at the line outs.
Each time they come to meet on their interest rate decision at the set pieces will be key while trying to keep the exchange rate onside, potentially helped along by some fresh legs from off the bench as the Fed come on to the pitch and potentially hike before full-time is up this year.
In the meantime, footwork, such as Nehe Milner-Skudder‘s sidestep, around shocks from the commodity sector will be key until the half time whistle when the economy can then hopefully take a breather and enjoy some half-time refreshing and healthy looking milk prices.
NZD/USD levels
Technically, the market likes the price well placed above the 1hr 200 SMA and above the 0.6754 pivot. The 200 DMA at 0.7006 weighs on the price, despite a break above the 55 DMA at the start of October. A break of 0.68 would be key with daily closes that should open some space towards R3 at 0.6923 for a momentum gathering maul towards the 0.7000 try line.
See here for NZD/USD risk events for this week
(Market News Provided by FXstreet)