All central banks are equal, but some central banks are more equal than other [
case in point, the Reserve Bank of New Zealand said they are increasing rates between 2014 and early 2016, but this did not stimulate NZD / USD higher, although NZD received a further boost last week with a stronger than expected Q3 GDP growth of 1.4%. Instead, the market chose to focus more on the cone of the Fed, sending NZD / USD to a low of 0,815 after the US central bank announced its decision to shave the monthly purchase current QE of $ 10 billion, a "symbolic" gesture by Bernanke as the rest of the members of the FOMC were hawkish calls for cutting $ 20 billion. The Fed noted that further reductions will follow in the future, but Bernanke was much more discreet about when and how the cuts will come, and is much less open compared to Gov. RBNZ Wheeler who has committed a total value of 2 25% of the rate hike. the bias of the market for a stronger USD is so huge right now we suspect NZD / USD may continue lower, though RBNZ rate hike at this time.
Again, the obvious favoritism to market the Fed on the respective policy measures RBNZ is understandable. USD is much more diffused and US rates much watched as NZD and pure difference in the results between the two central banks means that Fed policy will impact the world economy much more than RBNZ. Therefore, we should not be surprised that USD gains against NZD, although the case of a stronger USD is actually lower than NZD.
Time Table
what it means is that we could see continued downward pressure on NZD / USD. Currently we are trading below the 0.8174 support flexible, with decline seen in the last hour unable to overcome the resistance became support. This opens a move towards 0,815, a notion that is supported by Stochastic with its bearish cycle ongoing. However, since the stochastic readings are close to the oversold region, it is unlikely that the price will be able to breach 0,815 and push further especially as the volume of transactions in the last days of 2013 will be low and very unlikely to follow through will be strong. Even if followed through, there is the danger that slide in a low volume environment may not be an accurate reflection of market sentiment, and the risk of a sharp decline when there is good service CV January 2014.
weekly chart
downward pressure in the weekly chart is strong as well, with prices testing the trend line rising. However, similar to the short-term chart, stochastic readings are close to oversold, and it is likely that the price will find support around 0.81, although prices manage to break the rising trendline. Traders are waiting to see the bearish momentum can pick up finish hugely disappointed. This price does not mean will not be able to break 0.81 in the future though. If the market will continue to promote the tapered Fed action on rate hikes RBNZ, we could see the bearish services resume in early 2014, especially if the rebound of 0.81 fail to break au above the downward trend line
links :.
AUD / USD Technical - Mild Support Seen Versus bearish backdrop Strong
EUR / USD Technical - Bearish Pressure Intact But do not expect Slide Sudden
GBP / USD - Pound disdain Sharp US data
This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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