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12 Mar 2015
NZD/USD: Bid but not for long
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7365 with a high of 0.7449 and a low of 0.7273.
NZD/USD's relief rally on the back of the steady hand from the RBNZ has failed on the 0.74 handle, over two cents higher than where the bird was before the Central Banks decision and after the RBNZ made clear that policy was likely to remain on hold for some months.
Jane Foley, senior currency strategist at Rabobank noted that Governor Wheeler again attempted to talk the NZD lower though but the market paid little heed. "Given that 24 or so other central banks have cut interest rates this year, the RBNZ is likely to have continued difficulty in depressing the value of NZ’s effective exchange rate. That said, we expect that the value of the NZD can fall further this year vs. the USD." Technically, 0.7176 is the Feb and three year low while 0.7715 is enrout to the bearish gap of Aug 2014.
NZD/USD's relief rally on the back of the steady hand from the RBNZ has failed on the 0.74 handle, over two cents higher than where the bird was before the Central Banks decision and after the RBNZ made clear that policy was likely to remain on hold for some months.
Jane Foley, senior currency strategist at Rabobank noted that Governor Wheeler again attempted to talk the NZD lower though but the market paid little heed. "Given that 24 or so other central banks have cut interest rates this year, the RBNZ is likely to have continued difficulty in depressing the value of NZ’s effective exchange rate. That said, we expect that the value of the NZD can fall further this year vs. the USD." Technically, 0.7176 is the Feb and three year low while 0.7715 is enrout to the bearish gap of Aug 2014.