October 15, 2012
The .8200 major psychological level just proved too much for the Kiwi to handle. NZD/USD rallied to an intraday high of .8210 on Friday only to drop and close 4 pips below its opening price at .8170.
Just like its comdoll counterparts, the absence of economic reports from its motherland left the Kiwi vulnerable to market sentiment. It was able to rally during the Tokyo and London sessions on rumors about a Spanish bailout and PBOC rate cut. However, it seems like traders quickly abandoned the currency when they realized that there was no truth to the hearsay.
But don't worry! Later today at 9:45 pm GMT, New Zealand's quarterly CPI report will be on tap and it could provide the Kiwi with a clearer direction on the charts.
The consensus is for the report to print at 0.5% for the third quarter. A better-than-expected figure may boost the Kiwi as it could give the RBNZ one more reason not to follow its other counterparts in easing monetary policy. However, a disappointing figure could convince them to join the bandwagon and therefore, might be bearish for the Kiwi.
Last edited by PipDiddy; 10-14-2012 at 09:57 PM.
"The only cable I watch is the pound baby."