New Zealand Dollar: Citibank Forecast NZ Dollar to Rise against USD to 100 Day Moving Average
The New Zealand Dollar (Currency:NZD) is forecasted to enjoy further gains against the US Dollar and other cross rates such as the British Pound in coming sessions.
Above: The New Zealand dollar is forecasted to move higher agaisnt the US Dollar, however today we see NZD reverse some of the recent gains made in the past 24 hours.
The New Zealand Dollar has enjoyed a positive 24 hours worth of trade; however we are witnessing a pause early on in London:
The Pound to New Zealand Dollar exchange rate is 0.34 pct up on a day-to-day basis at 1.9834.
The New Zealand Dollar to Pound exchange rate is thus at 0.5041.
The New Zealand Dollar to US Dollar rate is 0.49 pct lower at 0.7869.
NB: These are quotations from the wholesale markets. Your bank will affix a discretionary spread. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please learn more here.
US Dollar strength halts resurgent New Zealand Dollar
Thursday morning brings with it a sharply higher US Dollar which has seen recent gains in the commodity currency sector halted somewhat.
Nevertheless, over the past 24 hours we have seen some decent price action in the New Zealand Dollar "which outperformed other major currencies, and NZD/USD closed at 0.7906, up 1.4%," says a morning note on NZD from Citibank.
Citi are forecasting further gains for the New Zealand Dollar / US Dollar exchange rate:
"As milk product accounts for more than 20% of New Zealand’s exports, a pick-up in the price of milk powder is likely to be NZD-positive.
"Technically, NZD/USD may go up to the 100MA of 0.8029, while support may be seen at 0.7684."
Currencies today: US Dollar well bid, caution ahead of tomorrow's non-farm payroll data
Piet Lammens tells us the next 36 hours present a packed calendar for currencies:
"Later today, the calendar is well filled. There are plenty of eco data in the US and the ECB will hold a policy meeting, as usual follow ed by the monthly press conference of Mr. Draghi. We expect Mr. Draghi the hold the same line of last month.
"The ECB president will take notice of the recent improvement in eco data. As this improvement is still in its very early stages, it should be no obstacle for the ECB to keep its bias to keep policy very accommodative from long. In the US, the ADP labour market report, the jobless claims, the factory orders and the ISM non- manufacturing will be published.
"We expect the US eco data to come out strong, with mostly upside risks to the consensus. Of course any market reaction will remain guarded ahead of tomorrow’s payrolls."