Back
16 Apr 2013
Forex: Kiwi retreats as macro risks weigh on sentiment
FXstreet.com (Barcelona) - The NZD/USD finished the New York session 142 pips lower to close at 0.8421. The Kiwi appeared to lose its bid early in the Asia session, as China GDP missed expectations and started the initial selling in risk assets. It was a rough day across the board for commodity currencies, with both the Aussie and Loonie also trading sharply lower.
As for upcoming economic data, market participants should be aware that NZD CPI will be released on April 16th at 22:45 GMT. According to William Schumaker of FXBriefs.com, NZ Minister of Finance English Says,”NZ Faces Challenges if NZD Stays at 86 US Cents.” Furthermore, “High currency is headwind to rebalancing economy and agrees with RBNZ that NZD is over-valued.”
From a technical perspective, NZD/USD failed to hold the 0.8480-0.8470 support zone which was previous resistance on the weekly chart. This is a bearish development, and although early in the week, needs to be monitored in coming sessions. Additionally, price closed below the 9dma for the first time since March 20th. This should also serve as a red flag for Kiwi bulls the rest of the week.
As for upcoming economic data, market participants should be aware that NZD CPI will be released on April 16th at 22:45 GMT. According to William Schumaker of FXBriefs.com, NZ Minister of Finance English Says,”NZ Faces Challenges if NZD Stays at 86 US Cents.” Furthermore, “High currency is headwind to rebalancing economy and agrees with RBNZ that NZD is over-valued.”
From a technical perspective, NZD/USD failed to hold the 0.8480-0.8470 support zone which was previous resistance on the weekly chart. This is a bearish development, and although early in the week, needs to be monitored in coming sessions. Additionally, price closed below the 9dma for the first time since March 20th. This should also serve as a red flag for Kiwi bulls the rest of the week.