JAHResearch's Commentaries

Central Bank Vote of Confidence Supports New Zealand Dollar

by JAHResearch on Jun 11, 2009

The weaker Dollar and the strong demand for commodity-based currencies helped trigger rallies in the AUD USD and NZD USD. Additional support for the New Zealand Dollar came following the announcement by the Reserve Bank of New Zealand that interest rates would stay at 2.5%. This represented confidence by the RBNZ that the economy was in a position to recover from its current recession.

Fundamentally, news that Australia lost fewer jobs than forecast helped drive the Aussie higher in addition to the increase in trader appetite for risk.

Technically, the AUD USD is currently in a position to challenge the last Main Top at .8264 and the major Fibonacci retracement level at .8382. A trade through the Main Top will negate last week's closing price reversal top.

The current rally has helped form a new Main Trend Bottom at .7828. A trade through this level will turn the Main Trend to down.

Regaining a major 50% level at .7983 is helping to support this market. A close back under this level will indicate that the selling is greater than the buying at current levels.

Based on the daily swing chart, this market could trade as high as .8642 within the next 12 days.

Tags:
new-zealand-dollar, australian-dollar

More Commentaries by this author

0 0 Share

Sign in or Join now to leave a Comment and rate content!