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18 Apr 2014
NZD/USD keeps ts heavy tone
FXStreet (Bali) - NZD/USD continues to trade on a heavy tone in Asia, currently at 0.8570 after losing key support at 0.8575/77 (April 16 swing low).
The next big risk event for the pair comes next Wednesday, when the RBNZ will meet to decide the new rate setting, expected to increase by 25bp to 3%. As Nomura notes, "the market, according to our Central Bank Expectations Dashboard, is pricing in a near certainty of a rate hike of 25bp; markets are also pricing in at least two more hikes by the RBNZ though the end of the year."
Technically, NZD/USD faces immediate support at 0.8550, level where solid bids are expected to challenge the recent fall ahead of 0.85/8515 static support area. On the upside, buying should be treated as a selling opportunity as long as 0.8650 is not re-taken.
The next big risk event for the pair comes next Wednesday, when the RBNZ will meet to decide the new rate setting, expected to increase by 25bp to 3%. As Nomura notes, "the market, according to our Central Bank Expectations Dashboard, is pricing in a near certainty of a rate hike of 25bp; markets are also pricing in at least two more hikes by the RBNZ though the end of the year."
Technically, NZD/USD faces immediate support at 0.8550, level where solid bids are expected to challenge the recent fall ahead of 0.85/8515 static support area. On the upside, buying should be treated as a selling opportunity as long as 0.8650 is not re-taken.