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8 Mar 2013
Forex: NZD/USD pullbacks to retest 0.8260
The New Zealand Dollar was able to break through 0.8260, weekly support area, with some follow through driving the pair to a fresh 4-day low at 0.8246 before attempting a pullback now to retest the breakout level.
Market commentators, including Westpac FX currency strategist Imre Speizer, cited by Dow Jones, note that weak imports from China, which came at -15.2% in Feb vs -8.8% forecast, weighed on the AUD/USD and NZD/USD.
Technically, after breaking a multi-month ascending trendline coming from May 2012 at 0.7430, the Kiwi has had two topside failures to recover the 0.83 level since the recovery of this years' low sub 0.82 on March 4. Recent candle printing shows some abrupt selling, with last technical break through 0.8350/50 opening the doors for 0.8225, Feb 26 low, ahead of 0.82, March 1 low.
On the upside, looks like 0.8275 static intra-day resistance is the first key level to regain to ease some pressure. The pair may experience some wild swings later today, when in the US, the payrolls data is published.
Market commentators, including Westpac FX currency strategist Imre Speizer, cited by Dow Jones, note that weak imports from China, which came at -15.2% in Feb vs -8.8% forecast, weighed on the AUD/USD and NZD/USD.
Technically, after breaking a multi-month ascending trendline coming from May 2012 at 0.7430, the Kiwi has had two topside failures to recover the 0.83 level since the recovery of this years' low sub 0.82 on March 4. Recent candle printing shows some abrupt selling, with last technical break through 0.8350/50 opening the doors for 0.8225, Feb 26 low, ahead of 0.82, March 1 low.
On the upside, looks like 0.8275 static intra-day resistance is the first key level to regain to ease some pressure. The pair may experience some wild swings later today, when in the US, the payrolls data is published.