According to Mike Jones, an analyst from the Bank of New Zealand, the negative sentiments over the eurozone debt crisis has been pressing the New Zealand Dollar exchange rate. This week’s Spanish bond auction will determine the future succession of events.
However, he expects New Zealand’s CPI to come out better than expected, thus supporting the New Zealand currency.
As New Zealand bonds showed some growth, investors turned to safe haven assets. The swaps are seeing a decline amid the growing concerns over the eurozone debt crisis and stock market weakness. However, the currency strategists at ASB expect the NZ Dollar to strengthen in the long run. They say the latest roller coaster(seen over the last 9 months) was caused by speculators. They expect the global economy (and New Zealand’s economy in particular) to show stronger fundamental data.
According to , NZDUSD keeps retracing against the long-term rally. A break above the 0.8318 high will resume the forming of wave А/В of wave level Daily2. The 0.8470 high will turn into the closest major level of resistance. A break below 0.8058 will trigger the forming of wave А/В of Weekly. The Mf sloping channel and level 0.8047 will become the closest major levels of support.
