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23 May 2014
NZD/USD bottoming towards end of week
FXStreet (Guatemala) - NZD/USD is trading at 0.8566, up 0.02% on the day, having posted a daily high at 0.8568 and low at 0.8565.
NZD/USD is bottoming here as we draw towards a close for the week ahead of the New Home Sales data for the US session while the calendar is empty for New Zealand. However, Kymberly Martin, Senior Market Strategist at BNZ explained they now believe the market seriously under-estimates the OCR hiking cycle, saying that it prices only 125bps of hikes over the next two years. “ The OCR will only be back at ‘neutral’ (circa 4.25%), 27 months into a tightening cycle, when the economy is expanding well above trend. By contrast, we see the OCR at 5.00% by the end of next year. The RBNZ in its last published MPS saw the OCR at 5.00% by two years’ time”.
NZD/USD Levels
With spot trading at 0.8567, we can see next resistance ahead at 0.8568 (Daily High), 0.8570 (Daily Classic PP), 0.8574 (Weekly Low), 0.8590 (Yesterday's High) and 0.8592 (Weekly Classic S1). Support below can be found at 0.8566 (Daily Open), 0.8566 (Hourly 20 EMA), 0.8565 (Daily Low), 0.8555 (Weekly Classic S2) and 0.8551 (Yesterday's Low).
NZD/USD is bottoming here as we draw towards a close for the week ahead of the New Home Sales data for the US session while the calendar is empty for New Zealand. However, Kymberly Martin, Senior Market Strategist at BNZ explained they now believe the market seriously under-estimates the OCR hiking cycle, saying that it prices only 125bps of hikes over the next two years. “ The OCR will only be back at ‘neutral’ (circa 4.25%), 27 months into a tightening cycle, when the economy is expanding well above trend. By contrast, we see the OCR at 5.00% by the end of next year. The RBNZ in its last published MPS saw the OCR at 5.00% by two years’ time”.
NZD/USD Levels
With spot trading at 0.8567, we can see next resistance ahead at 0.8568 (Daily High), 0.8570 (Daily Classic PP), 0.8574 (Weekly Low), 0.8590 (Yesterday's High) and 0.8592 (Weekly Classic S1). Support below can be found at 0.8566 (Daily Open), 0.8566 (Hourly 20 EMA), 0.8565 (Daily Low), 0.8555 (Weekly Classic S2) and 0.8551 (Yesterday's Low).