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NZD/USD’s bearish technicals plus Wheeler comments crushing the bulls’ hopes

FXstreet.com (Barcelona) - RBNZ Governor Wheeler’s comments Tuesday have sent the NZD/USD tumbling in early trading. The cross may be in the early stages of the next wave lower.

NZD/USD reacting to Wheeler’s comments in the last hour

The NZD/USD cross is selling off substantially in reaction to Reserve Bank Governor Wheeler’s speech this evening in which he hinted that no rate hikes would be necessary for the immediate future and that they may need to take steps to reduce the headwinds created by their historically high currency valuation.

The Kiwi had been on a nice track higher until it peaked out at 09:00 GMY Monday morning at 0.8162. The move lower since then has taken the cross down to 0.8050 – which is still far higher than the 8/4 low of 0.7736.

Technical outlook for NZD/USD

Technicians are saying more upside is possible in NZD/USD for this upside correction but that the nature of the trading since the peak Monday morning has them thinking a top has been put in already at 0.8162. If they are correct in that observation, then they say NZD/USD could be headed down to 0.72935 eventually. Short-term support, however, comes into play at the 8/13 low at 0.7933.

Hard to build sustainable AUD bullish case

he RBA board minutes highlighted today that the chances of further rate cuts and $A value are strongly linked, which makes one think how much room the Aussie can recover before the RBA starts to talk up rate cuts again.
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NZD/JPY plummets below 78.50 following RBNZ Wheeler statements

The NZD/JPY foreign exchange cross rate is last quoted at 78.17 bids, off recent session and weekly lows at 78.02 following RBNZ Wheeler's comments on how overvalued and unsustainable at current rates the Kiwi is.
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