Back
9 Feb 2015
NZD/USD: Scope for 0.7120 medium term
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7430 with a high of 0.7439 and a low of 0.7333.
NZD/USD has been off the lows below 0.7200 at 0.7173 and taken back the 0.74 handle on the basis that Wheeler recently came out and said that the bank is on hold which informed markets that we are not going to see any rate cuts for the foreseeable future while the RBNZ continue to monitor economic data. A decent bounce in whole milk powder prices (+19%) at last week’s auction also caused some excitement in the NZD, as noted by Imre Speizer, analyst at Westpac Banking Corporation.
He went onto say, technically speaking, "Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible."
NZD/USD has been off the lows below 0.7200 at 0.7173 and taken back the 0.74 handle on the basis that Wheeler recently came out and said that the bank is on hold which informed markets that we are not going to see any rate cuts for the foreseeable future while the RBNZ continue to monitor economic data. A decent bounce in whole milk powder prices (+19%) at last week’s auction also caused some excitement in the NZD, as noted by Imre Speizer, analyst at Westpac Banking Corporation.
He went onto say, technically speaking, "Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible."