NZD/USD neutral and closes bullish gap

FXStreet (Guatemala) - NZD/USD is trading at 0.7760, up 0.21% on the day, having posted a daily high at 0.7826 and low at 0.7756.

NZD/USD is closing the bullish gap and has dropped back below the 0.78 handle. Overall, the pair has been trading soft but bears were unable to conquer the 0.76 handles territory and the support between 0.7660/0.7710 areas put a roadblock into the pairs decent. The outlook is quite neutral currently while the start of the week is light on data and we trade with the usually post Nonfarm payrolls lull in the market.

Meanwhile, analysts at Westpac explained that while NZ’s economy remains in good shape, most recently evidenced by the Q3 employment report, external factors are hurting dairy export prices and inflation at the bottom of the RBNZ’s 1%-3% target band will keep the RBNZ on hold for at least the year ahead (the market is pricing no more hikes until Jan 2016). “Also, it appears the USD’s uptrend has merely stalled”.

“We target 0.7500 by year end” - Imre Speizer, analyst at Westpac Banking Corporation ABN.

NZD/USD noteworthy short-term levels

Spot is presently trading at 0.7762, and next resistance can be seen at 0.7775 (Hourly 20 EMA) and 0.7779 (Hourly 200 SMA). Support below can be found at 0.7750 (Weekly Classic PP), 0.7745 (Hourly 100 SMA), 0.7725 (Daily Classic PP) and 0.7693.