Back
2 Sep 2015
NZD/USD testing US session lows
FXStreet (Guatemala) - NZD/USD is continuing along on the offer while commodities remain under pressure and sighted to remains so for the foreseeable future by IMF's Legarde.
NZD/USD is stepping into an even more bearish neck of the woods while the price diverges away from the 50 SMA on the hourly chart and is capped at the 50 DMA on the daily sticks on the 23rd of August's extension of the downtrend.
The US dollar had been weakening at the start of the month, but the commodity currencies are unable to sustain any kind of a recovery. In the case of the Kiwi, in European hours, Fonterra's dairy auction result came in at +10.9% vs last month's +14.8%, but the bird was unmoved on this data, and at the same time, in the US session, not even the worst result in ISM manufacturing for the US since May 2013 was able to bring about any sustained upside for the unit and at time of writing, with spot at 0.6328, the pair is testing the lows of the NY session at 0.6322.
Next we have the Nonfarm Payrolls this week for the pair and analysts at TD Securities explained, "We expect positive labor market momentum to continue in August, with the economy adding another 226K jobs following a decent 215K gain last month," which would ultimately weigh on the bird.
NZD/USD downside compelling
The 0.6708 downtrend of the 21st August while the 200 SMA is moving lower at 0.6419 today on the 30-min sticks of which capped last week's minor recovery to 0.6505.
The descending 50 DMA on the hourly is at 0.6378 today on a greater divergence to the downside from 200 SMA at 0.6490 currently. 0.6220 is compelling as the lowest prices since 2009 scored after Black Monday. The 50 DMA on the daily sticks at 0.6612 should be a tough area of resistance ahead of this month's high of 0.6708.
NZD/USD is stepping into an even more bearish neck of the woods while the price diverges away from the 50 SMA on the hourly chart and is capped at the 50 DMA on the daily sticks on the 23rd of August's extension of the downtrend.
The US dollar had been weakening at the start of the month, but the commodity currencies are unable to sustain any kind of a recovery. In the case of the Kiwi, in European hours, Fonterra's dairy auction result came in at +10.9% vs last month's +14.8%, but the bird was unmoved on this data, and at the same time, in the US session, not even the worst result in ISM manufacturing for the US since May 2013 was able to bring about any sustained upside for the unit and at time of writing, with spot at 0.6328, the pair is testing the lows of the NY session at 0.6322.
Next we have the Nonfarm Payrolls this week for the pair and analysts at TD Securities explained, "We expect positive labor market momentum to continue in August, with the economy adding another 226K jobs following a decent 215K gain last month," which would ultimately weigh on the bird.
NZD/USD downside compelling
The 0.6708 downtrend of the 21st August while the 200 SMA is moving lower at 0.6419 today on the 30-min sticks of which capped last week's minor recovery to 0.6505.
The descending 50 DMA on the hourly is at 0.6378 today on a greater divergence to the downside from 200 SMA at 0.6490 currently. 0.6220 is compelling as the lowest prices since 2009 scored after Black Monday. The 50 DMA on the daily sticks at 0.6612 should be a tough area of resistance ahead of this month's high of 0.6708.