Back
11 Mar 2014
NZD/USD erases gains amid risk aversion
FXStreet (Córdoba) - The NZD/USD failed to hold to gains and in the last hour of trading in Wall Street reached a fresh daily low at 0.8459 and is about to finish the day unchanged around 0.8465.
Earlier the pair traded above 0.8500 but it failed to hold and pulled back on European hours. The initial retreated found support at 0.8475, then bounced approaching 0.8500 but weakened by risk aversion, broke 0.8475 and fell to 0.8459.
Pause after rally
The pair is headed toward the fourth consecutive daily close around 0.8470 and the third time since the beginning of March that fails to hold above 0.8500, showing stabilization signs after rallying more than 200 pips from February 20 lows.
Price action could remain sideways ahead of RBNZ decision that will be announced in 24 hours. Expectations are for a rate hike of 25 basis points. Volatility in Kiwi crosses is likely to rise near the release of the statement.
Earlier the pair traded above 0.8500 but it failed to hold and pulled back on European hours. The initial retreated found support at 0.8475, then bounced approaching 0.8500 but weakened by risk aversion, broke 0.8475 and fell to 0.8459.
Pause after rally
The pair is headed toward the fourth consecutive daily close around 0.8470 and the third time since the beginning of March that fails to hold above 0.8500, showing stabilization signs after rallying more than 200 pips from February 20 lows.
Price action could remain sideways ahead of RBNZ decision that will be announced in 24 hours. Expectations are for a rate hike of 25 basis points. Volatility in Kiwi crosses is likely to rise near the release of the statement.