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19 Mar 2014
NZD/USD dumps a big figure on Fed
FXStreet (Guatemala) - NZD/USD dumped almost a full big figure on the release of the Feds decisions and FOMC statement. The Fed left rate son hold but reduced the monthly pace of bond purchases by $10 billion, to $55 billion.
The Federal Reserve explained that they will look at a wide range of data in determining when to raise its benchmark interest rate from zero, dropping a pledge tying borrowing costs to a 6.5 percent unemployment rate. Their assessments, they said, take into account a “wide range of information,” including labour market conditions, inflation expectations and financial markets. Meanwhile, strategists at RBS noted that the fourth quarter GDP is released in New Zealand after the RBNZ began a tightening cycle by hiking the OCR 25bp at its March meeting. “The consensus forecast for a 0.9% q/q gain is not far off the 0.8% q/q outturn forecast by the RBNZ. In the generally low-vol environment, we see carry opportunities such as long NZD positions as likely still supported, despite longer-term concerns about the persistent current account deficit in New Zealand and the moderation in housing price growth”.
NZD/USD Levels
The 20 DMA is 0.8422, the 50 DMA is 0.8335 and the 200 DMA is 0.8167. RSI (14) 42.04. Supports are 0.8497 and 0.8510. Spot is 0.8536 while resistances are 0.8582, 0.8610, 0.8641, 0.8676, 0.8733 and 0.8794.
The Federal Reserve explained that they will look at a wide range of data in determining when to raise its benchmark interest rate from zero, dropping a pledge tying borrowing costs to a 6.5 percent unemployment rate. Their assessments, they said, take into account a “wide range of information,” including labour market conditions, inflation expectations and financial markets. Meanwhile, strategists at RBS noted that the fourth quarter GDP is released in New Zealand after the RBNZ began a tightening cycle by hiking the OCR 25bp at its March meeting. “The consensus forecast for a 0.9% q/q gain is not far off the 0.8% q/q outturn forecast by the RBNZ. In the generally low-vol environment, we see carry opportunities such as long NZD positions as likely still supported, despite longer-term concerns about the persistent current account deficit in New Zealand and the moderation in housing price growth”.
NZD/USD Levels
The 20 DMA is 0.8422, the 50 DMA is 0.8335 and the 200 DMA is 0.8167. RSI (14) 42.04. Supports are 0.8497 and 0.8510. Spot is 0.8536 while resistances are 0.8582, 0.8610, 0.8641, 0.8676, 0.8733 and 0.8794.