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16 Oct 2014
NZD/USD testing critical 0.80, regains 20-DMA
FXStreet (Bali) - The NZ Dollar was the strongest currency on Wednesday, coming just a few pips short from the psychologically important 0.80 round number, with current rate at 0.7980 after two consecutive topside failures at 0.7991.
While the Kiwi was assisted by aggressive USD sales across the board, coupled with a positive dairy auction result - up 1.4% in US dollars terms, best result since Jan 21st 2014 - , it is mind-blowing to see the Antipodean currency performing in such a stellar fashion amid risk deleveraging - Yen boosted -, which is being attributed to a series of factors from fresh fears of the Ebola virus spreading in the US, sell-off in equities and a strong rally in US bonds.
Technically, the Kiwi is closing the NY market above the 20-day EMA for the first time since the 2-month rout began back on July 16th, a sign that buyers have now the upper hand to potentially see higher levels ahead, as risk of dip buying grows. As long as NZD/USD can keep its head above the 0.78 line - successfully protected in multiple occasions since regained Oct 7th - the possibilities of intraday bullish dynamics taking hold are fairly decent.
While the Kiwi was assisted by aggressive USD sales across the board, coupled with a positive dairy auction result - up 1.4% in US dollars terms, best result since Jan 21st 2014 - , it is mind-blowing to see the Antipodean currency performing in such a stellar fashion amid risk deleveraging - Yen boosted -, which is being attributed to a series of factors from fresh fears of the Ebola virus spreading in the US, sell-off in equities and a strong rally in US bonds.
Technically, the Kiwi is closing the NY market above the 20-day EMA for the first time since the 2-month rout began back on July 16th, a sign that buyers have now the upper hand to potentially see higher levels ahead, as risk of dip buying grows. As long as NZD/USD can keep its head above the 0.78 line - successfully protected in multiple occasions since regained Oct 7th - the possibilities of intraday bullish dynamics taking hold are fairly decent.