From the FXWW Chatroom – NZD remains in a holding pattern, mildly bid as shorts continue to trim and the USD remains under pressure. While we hold at these levels (above the downtrend and on recent highs) we’d expect the RBNZ Gov to be dictating a relatively dovish opening paragraph – But it’s not all about Orr. Offshore, midterms and the Fed hold our focus.
NZD has managed to regain the 100day m/a at 6664. ANY close above here will see bids rachet higher, so resistance becomes support. Next resistance is up at 67 (near Sep and Oct highs) which should keep us in a narrow range for the day. Overall though, with a stronger US economy, faltering local data and a dovish local CB we expect sellers to emerge in NZD 67 to 68 cents to re-establish shorts.
View the latest market information in the FXWW Chatroom with a free trial.