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11 May 2015
NZD/USD correction extending down to test 0.74 the figure
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7402 with a high of 0.7480 and a low of 0.7400.
NZD/USD bears continue to come out in force and now trades well and truly below the 0.75 handle with an opening bearish gap from 0.7469 and a steady decent down to challenge the handle and support at the figure.
There is growing sentiment that we will se a cut to come from the RBNZ later this year. A bearish outlook for the economy has been building up for New Zealand having ended 2014 on a more bullish note and the hawks were actually predicting a rate rise at some stage in 2015.
This has turned on its head of late with not only dairy prices a factor, with Fonterra’s GlobalDairyTrade auction prices hitting a 5 year low recently, but jobs data also disappointing of late with NZ Q1 showing an unexpected increase of 5.8%unemployment. Just today there were further poor numbers, this time from the highstreet in card sales dropping heavily. The big news over the weekend was China cutting the benchmark lending rates by 0.25%, also weighing on the bird.
Technically, we are testing the April lows and this is a correction taking fold with a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.
NZD/USD bears continue to come out in force and now trades well and truly below the 0.75 handle with an opening bearish gap from 0.7469 and a steady decent down to challenge the handle and support at the figure.
There is growing sentiment that we will se a cut to come from the RBNZ later this year. A bearish outlook for the economy has been building up for New Zealand having ended 2014 on a more bullish note and the hawks were actually predicting a rate rise at some stage in 2015.
This has turned on its head of late with not only dairy prices a factor, with Fonterra’s GlobalDairyTrade auction prices hitting a 5 year low recently, but jobs data also disappointing of late with NZ Q1 showing an unexpected increase of 5.8%unemployment. Just today there were further poor numbers, this time from the highstreet in card sales dropping heavily. The big news over the weekend was China cutting the benchmark lending rates by 0.25%, also weighing on the bird.
Technically, we are testing the April lows and this is a correction taking fold with a major top on the 28th April in the double top and the move below the ascending tend line at 0.7600/10.