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28 Mar 2014
NZD/USD; an insight to it’s height
FXStreet (Guatemala) - NZD/USD is remaining bid on the week albeit doesn’t show any signs of really taking off from here at the time being.
NZD/USD has climbed through 0.8680 again, printing a new high on yesterday but similarly, the bird dropped its wings and glided lower below target.
NZD one of the best performers
Analysts at BNZ explained that the NZD is the second-best performing major currency over the month of March, pipped for first-place only by a resurgent AUD. “The RBNZ’s push from the starting blocks certainly helped the NZD’s cause, as the central bank outlined a more aggressive policy outlook than the market had expected”.
NZD on risk apatite –more of a link to commodities
They went onto say however, “On the other hand, we have been surprised by how little the NZD has responded to changes in risk appetite over the month. Certainly there’s been cause for concern, with the annexation of Crimea and continued volatility in Chinese financial markets (not to mention deteriorating economic data in that country). Global equity indices have been subdued, and our Risk Appetite Index has seen healthier days. But the NZD marched on undeterred”, adding,, “What has driven this ascent? In a turn of events that should surprise no one, the NZD has been more closely linked to NZ commodity prices over the past 12 months. The rolling correlation between NZD/USD and commodity prices has skyrocketed to 54%, up from -15% at the start of the year”
NZD/USD Levels
The 20 DMA is 0.8497, the 50 DMA is 0.8363 and the 200 DMA is 0.8183. RSI (14) reads 62.82. Supports are ascending from 0.8516, 0.8533, 0.8565, 0.8590, 0.8620 and 0.8640. Spot is 0.8666 while resistances are 0.8676, 0.8733 and 0.8785.
NZD/USD has climbed through 0.8680 again, printing a new high on yesterday but similarly, the bird dropped its wings and glided lower below target.
NZD one of the best performers
Analysts at BNZ explained that the NZD is the second-best performing major currency over the month of March, pipped for first-place only by a resurgent AUD. “The RBNZ’s push from the starting blocks certainly helped the NZD’s cause, as the central bank outlined a more aggressive policy outlook than the market had expected”.
NZD on risk apatite –more of a link to commodities
They went onto say however, “On the other hand, we have been surprised by how little the NZD has responded to changes in risk appetite over the month. Certainly there’s been cause for concern, with the annexation of Crimea and continued volatility in Chinese financial markets (not to mention deteriorating economic data in that country). Global equity indices have been subdued, and our Risk Appetite Index has seen healthier days. But the NZD marched on undeterred”, adding,, “What has driven this ascent? In a turn of events that should surprise no one, the NZD has been more closely linked to NZ commodity prices over the past 12 months. The rolling correlation between NZD/USD and commodity prices has skyrocketed to 54%, up from -15% at the start of the year”
NZD/USD Levels
The 20 DMA is 0.8497, the 50 DMA is 0.8363 and the 200 DMA is 0.8183. RSI (14) reads 62.82. Supports are ascending from 0.8516, 0.8533, 0.8565, 0.8590, 0.8620 and 0.8640. Spot is 0.8666 while resistances are 0.8676, 0.8733 and 0.8785.