Thursday 13 August 2009

Short-Term Forex Technical Outlook: NZD/USD

The NZD/USD surged to a firm period broad of 0.8634 during the overnight change as investors put the Reserve Bank of New Sjaelland to tighten contract over the incoming 12 months, and expectations for higher welfare rates haw move to intend the New Sjaelland dollar higher throughout the second-half of the year.

Currency Pair: NZD/USD Chart: 60 Fukkianese Charts Short-Term Bias: Flat

Analysis

NZDUSD1_08.14

The NZD/USD surged to a firm period broad of 0.8634 during the overnight change as investors put the Reserve Bank of New Sjaelland to tighten contract over the incoming 12 months, and expectations for higher welfare rates haw move to intend the New Sjaelland dollar higher throughout the second-half of the year. After achievement a broad of 0.7220 in August, the kiwi-dollar tumbled to a low of 0.4894 in March as traders restrained their craving for higher risk/reward investments however, the recuperate in mart view haw support the feat over the near-term as venture trends move to dictate price state in the nowness market. Meanwhile, Credit Suisse overnight index swaps are up by more than 100bp as investors anticipate the RBNZ to raise adoption costs incoming year, and the rise in the welfare rate looking haw lead the pair to retrace the sell-off from the previous assemblage as ontogeny prospects improve. Over the incoming few hours of trading, we haw see the NZD/USD move to near higher following the feat in the equities mart however, as the RSI approaches overbought territory, gains are likely to be capped, and we haw see the pair start back towards 0.6710-20 (78.6% Fib) to fill-in the notch from the 120 SMA at 0.6728. Be sure to analyse out another Technical Reports from DailyFX for additional information on the field nowness pairs.

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