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17 Sep 2013
NZD/USD reversing its earlier losses on solid TIC flows
FXstreet.com (Athens)- The NZD/USD managed to pare its earlier losses on US soft inflation data, as the TIC flows released at very solid levels.
The NZD/USD moves upwards on TIC data; seems that markets are muted ahead of FOMC
The “kiwi” managed to regain momentum and moved back upwards at its earlier position after the release of very strong TIC data. However, it seems that traders are very ensured about the outcome of the FOMC minutes and have already priced the minutes result in the price. Thus traders all over the globe are more than sure that the outcome will be a dovish one, i.e. a relatively modest tapering with the additional forward guidance. Despite the opinion of the vast majority of traders, which is mostly already priced in crosses, investors should have in mind that Bernanke told lawmakers July 17 that “low inflation could cause the recovery to bog down by inhibiting capital investment and increasing the risk of “outright deflation,” a broad-based decline in prices.”
Technical Perspective and Outlook on NZD/USD
Traders should be aware of the fact that the “kiwi” is again and again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. What’s more we are ahead of crucial data regarding both the New Zealand economy and the US one, respectively (GDP and FOMC minutes). The low that shaped yesterday at 0.8130, as well as the 0.8205 high as of the 22th of May, should be seen as the most significant support and resistance.
The NZD/USD moves upwards on TIC data; seems that markets are muted ahead of FOMC
The “kiwi” managed to regain momentum and moved back upwards at its earlier position after the release of very strong TIC data. However, it seems that traders are very ensured about the outcome of the FOMC minutes and have already priced the minutes result in the price. Thus traders all over the globe are more than sure that the outcome will be a dovish one, i.e. a relatively modest tapering with the additional forward guidance. Despite the opinion of the vast majority of traders, which is mostly already priced in crosses, investors should have in mind that Bernanke told lawmakers July 17 that “low inflation could cause the recovery to bog down by inhibiting capital investment and increasing the risk of “outright deflation,” a broad-based decline in prices.”
Technical Perspective and Outlook on NZD/USD
Traders should be aware of the fact that the “kiwi” is again and again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. What’s more we are ahead of crucial data regarding both the New Zealand economy and the US one, respectively (GDP and FOMC minutes). The low that shaped yesterday at 0.8130, as well as the 0.8205 high as of the 22th of May, should be seen as the most significant support and resistance.