FXStreet (Guatemala) – NZD/USD has been oscillating in a tight range in holiday season and is set up in a minor recovery from below the 0.65 handle having made highs that cleared the 0.68 handle earlier in the month.
The Fed was the next main theme after the RBNZ was digested and with the Fed lifting off, the question now is whether the Fed can or will continue to increase rates next year. How will the commodities sector play out and can NZ crawl out from a disinflationary situation where the RBNZ will not need to cut interest rates again?
As it stands, analysts at Westpac feel that the economy is losing momentum. “Over the past year, we’ve actually seen quite a sharp deceleration in growth – down from a rate of 3.7% in 2014″…”We expect that by mid-2016, the lingering softness in inflation and slowdown in growth will be apparent, and will prompt the RBNZ to cut rates again“.
Last Friday, FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around the Fed and the possible headwinds from China in the currency wars.
NZD/USD levels
Technically, on the wide, the price targets the 0.6869 mark where the 200 DMA is located and to the downside, the 100 DMA at 0.6555 through the cluster of MA’s guards the Nov lows at 0.6489.
(Market News Provided by FXstreet)