NZD USD expands its bullish stabilization
11/8/2016 8:10:47 AM
The NZD/USD pair expands its bullish stabilization level above 0.7300 handle into a 4th day today, as markets wait for the outcome of US elections and RBNZ decision for next direction.
Currently, the NZD/USD pair fall -0.20% to 0.7330, withdrawing somewhat from session lows struck at 0.7317 post-China data. The major is on a minor-recovery mode from a brief descending spike saw in a knee-jerk reaction to weak Chinese trade data. New Zealand is highly dependent on China for its exports.
While investors are relaxing their NZD longs ahead of the US elections, especially after the bulls once again ran into key persistence aligned near 0.7350 levels. Additional, cautious tone succeeds around the Kiwi as attention turns back towards fundamentals, with divergent monetary policy outlooks gaining back importance ahead of Thursday’s RBNZ rate decision.
To the upside, the next persistence is situated at 0.7350, above which it could expand gains to 0.7370 and from there to 0.7400. To the downside immediate support might be situated at 0.7300 and from there to at 0.7260, below which 0.7210 would be tested.