NZD/USD confined in a tight range ahead of FOMC. Despite the Asian markets moved higher ahead of the much-anticipated outcome of a U.S. Federal Reserve policy meeting and better than expected NZD overnight data, the NZD/USD is congested at a very small range. The NZD/USD is sitting on the fence ahead of FOMC minutes After the yesterday’s sharp uptrend movement, the NZD/USD is moving sideways since the early Asian’s trading day ahead of FOMC. What’s more New Zealand’s current account deficit in the second quarter was little changed at (–NZD2.2bn) seasonally adjusted but the rolling annual deficit was smaller than expected (-4.3% versus -4.8% estimated). Today we are ahead of some crucial data regarding the New Zealand economy, but would probably offer little distraction ahead of FOMC decision. Having publicly mused about a reduction in bond purchases since May’s testimony and not backed off the suggestion of “later in the year” despite some lackluster data in recent weeks, the vast majority of traders bet on a modest tapering, i.e. a modest taper of 10-15billions in combination with some additional forward guidance rhetoric. However, if Fed does not fully deliver on traders’ expectations, there would be a crucial impact on the pair. Technical Perspective and Outlook on NZD/USD Traders should be aware of the fact that the “kiwi” is again and again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. What’s more we are ahead of crucial data regarding both the New Zealand economy and the US one, respectively (GDP and FOMC minutes). The low that shaped yesterday at 0.8130, as well as the 0.8205 high as of the 22th of May, should be seen as the most significant support and resistance. Registers here: ironfxsolidtradingindonesia.blogspot/
Posted on: Wed, 18 Sep 2013 07:54:33 +0000
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