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7 Oct 2013
NZD/USD under heavy pressure amidst US fiscal melodrama
FXstreet.com (Athens) – The NZD/USD had been trading steadily downwards today since the early start of the Asian trading session on Sunday as the “risk-off” sentiment hurts the “kiwi” across the board.
NZD/USD wounded amidst risk off sentiment and ahead of Business Confidence data
The NZD/USD is on the down level today as the as the debt ceiling approaches after another week end of sabre rattling between the Democrats and Republicans over spending. Furthermore, today we are ahead of Economic Research (NZIER) Business Confidence. Elaborating on the last figure was 32 and as it was the best figure seen since January 2012, it is plausible that any number released better than the above will give “kiwi” a solid support. However amidst an environment of US political turmoil, risk-on currencies like the kiwi are usually underperforming. Last but not least, New Zealand’s Finance Minister Bill English through news wires warned earlier “that the Government is "serious" about reining in a rampant property market,” as well as that there was no room for complacency "and no room for political lolly scrambles".
Technical Outlook on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8308, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445
NZD/USD wounded amidst risk off sentiment and ahead of Business Confidence data
The NZD/USD is on the down level today as the as the debt ceiling approaches after another week end of sabre rattling between the Democrats and Republicans over spending. Furthermore, today we are ahead of Economic Research (NZIER) Business Confidence. Elaborating on the last figure was 32 and as it was the best figure seen since January 2012, it is plausible that any number released better than the above will give “kiwi” a solid support. However amidst an environment of US political turmoil, risk-on currencies like the kiwi are usually underperforming. Last but not least, New Zealand’s Finance Minister Bill English through news wires warned earlier “that the Government is "serious" about reining in a rampant property market,” as well as that there was no room for complacency "and no room for political lolly scrambles".
Technical Outlook on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8308, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8262 S2: 0.8241 S3:0.8220 R1: 0.8403 R2: 0.8424 R3: 0.8445