By TraderVox.com
tradervox.com (Dublin) – The kiwi-dollar pair dropped last week but pared these loses as renewed quantitative easing speculation arose in the US. This week, there are two minor events in New Zealand; hence investors will be leaning on technical levels this week. In retrospect, the official business confidence figure announced by the NBBZ gave the pair a boost as it rose to 19.5 points. This countered concerns about China and the small increase registered in the building sector. The pair was also boosted by the Bernanke speech at Jackson Hole on Friday. The market is expecting the Fed to extend guidance rather than additional stimulus to spur growth in the region.
The overseas trade index and the ANZ commodity prices are the two events from New Zealand. The overseas trade index will be announced on Sunday at 2245hrs GMT. This is a quarterly report the measures wealth in the country. The report showed a decline of 2.3 percent in the last quarter and the market is predicting a drop of 2 percent this time round. The ANZ Commodity Prices data will be released on Tuesday at 0100hrs. This report shows international prices which has been dropping in the last five months. The market expects this trend to continue during the next week.
The kiwi-dollar cross opened dollar cross opened the week with a decline below the support level at 0.80. Later, the pair recovered to close the week at 0.8023. The cross has a bearish outlook this week despite the Bernanke’s speech being dovish. This might be as a result of speculations that the Fed might extend its current twist program rather than additional stimulus. The kiwi is also limited by the deteriorating economic conditions in China. As such, some of the major resistance levels that might come into play this week include the 0.8123, 0.8083, and 0.8055. The pivot level this week is a narrow range between 0.8015 and 0.8018. Support levels to keep an eye on are 0.7988, 0.7948, and 0.7920
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