NZD/USD consolidated into the Easter Break, supported on coat tails of AUD


  • NZD/USD quiet into the close on Wall Street, Easter break could mean consolidation.
  • QE tapering on the cards and to support the antipodeans? 

NZD/USD is currently trading at 0.6013 between a range of 0.5940 and 0.6031 and is up 0.64%, edging lower from the day's highs in the close of Wall Street. The bird has been riding the strength in the Aussie midweek with the Reserve Bank fo Australia triggering a rally as markets perceived the rhetoric as bullish. As markets wind up for the Easter break, a period of consolidation this juncture is likely on the cards. 

QE has been at the core of the weakness in the antipodeans, but the RBA signalled that it could be on the verge of tapering."As the reality that they are sinks in, the Antipodeans will be under pressure again but the NZD does have trade and our ‘island nation’ status as supports," analysts at ANZ Bank argued 

As for the RBNZ, it announced it will provide term funding up to 3 years to NZ Banks via a new Term Lending Facility (TLF). "This is in addition to the Term Auction Facility announced on 20th March. Details are limited so far, but access to the TLF will be linked to the government's Business Finance Scheme announced last week. The first TLF operation will begin in May," analysts at TD Securities explained. 

The RBNZ also announced NZ Banks will make no dividend payments for the foreseeable future. There is likely to be growing pressure on Australian banks to at least cut dividend payments. Equity weakness would support flatter curves."

 

 FOMC minutes ignored

As for the FOMC minutes, markets did not react materially to them as much of the information contained in the minutes was already communicated by Powell and other Fed speakers.

"One noteworthy point is that the Fed discussed an "acute" decline in Treasury liquidity as the reason for their enormous Treasury purchases. This helps explain the Fed's later decision to remove the size of the purchases and proceed with unlimited buying," analysts at TD Securities pointed out. 

NZD/USD levels

NZD/USD

Overview
Today last price 0.6012
Today Daily Change 0.0035
Today Daily Change % 0.59
Today daily open 0.5977
 
Trends
Daily SMA20 0.5929
Daily SMA50 0.62
Daily SMA100 0.639
Daily SMA200 0.6413
 
Levels
Previous Daily High 0.6016
Previous Daily Low 0.592
Previous Weekly High 0.6064
Previous Weekly Low 0.5843
Previous Monthly High 0.645
Previous Monthly Low 0.547
Daily Fibonacci 38.2% 0.5979
Daily Fibonacci 61.8% 0.5957
Daily Pivot Point S1 0.5926
Daily Pivot Point S2 0.5875
Daily Pivot Point S3 0.583
Daily Pivot Point R1 0.6022
Daily Pivot Point R2 0.6067
Daily Pivot Point R3 0.6118

 

 

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