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16 Jul 2015
NZD/USD bears are relentless, testing 0.65 handle
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6512 with a high of 0.6604 and a low of 0.6498.
NZD/USD bears are not giving in and the bird is lower yet again as market in Europea dn the US piggy back on the overnight flows with the release of the CPI results in New Zealand , missing expectations Y/Y and Q/Q. CPI arrived as 0.3% Y/Y Q2 vs 0.4% while Q/Q arrived 0.4% vs 0.6% expected.
This coupled with the sell off after Fonterra’s GlobalDairyTrade price index that dropped 10.7%, all equates to the probability of the RBNZ cutting rates again this year.
Meanwhile, from Europe, the Greek parliament vote enabled the ECB deciding to lift the ELA ceiling for Greek banks. Also and at the same time, EU finance ministers agreed on a € 7 billion bridge loan for Greece and this will come from the European Financial Stabilisation Mechanism (EFSM), according to EU Juncker.
Technically, we have broken to the downside through key support of 0.6500 and on target for 0.6420.
NZD/USD bears are not giving in and the bird is lower yet again as market in Europea dn the US piggy back on the overnight flows with the release of the CPI results in New Zealand , missing expectations Y/Y and Q/Q. CPI arrived as 0.3% Y/Y Q2 vs 0.4% while Q/Q arrived 0.4% vs 0.6% expected.
This coupled with the sell off after Fonterra’s GlobalDairyTrade price index that dropped 10.7%, all equates to the probability of the RBNZ cutting rates again this year.
Meanwhile, from Europe, the Greek parliament vote enabled the ECB deciding to lift the ELA ceiling for Greek banks. Also and at the same time, EU finance ministers agreed on a € 7 billion bridge loan for Greece and this will come from the European Financial Stabilisation Mechanism (EFSM), according to EU Juncker.
Technically, we have broken to the downside through key support of 0.6500 and on target for 0.6420.