NZD/USD building bids on 0.85 handle

FXStreet (Guatemala) - NZD/USD is trading at 0.8525, up 0.04% on the day, having posted a daily high at 0.8528 and low at 0.8522.

Having pushed through onto the 0.85 handle and building bids, NZD/USD is finding some resistance here. The greenback has suffered on the most recent statement from the FOMC and analysts at Brown Brothers Harriman explained that they had made it clear that while the downside risk to inflation in the US had lessened, the slack in the labor market favoured continued accommodation, and the low Fed funds rate was anticipated to continue for a considerable period”. However, analysts at Bank of America Merrill Lynch explained that the better-than-expected 2Q GDP growth and the upward revision for 1Q and 2013 paint a positive growth story. Over to New Zealand, we are reminded by analysts at TD Securities that its labour market week where they expect the unemployment rate to peep below 6% in Q2—a five-year low—with another solid lift in employment in Wednesday (TD and mkt 5.8%). “Wages are also expected to creep higher with a 4% increase in minimal wages from 1 April. Neither expected to interrupt the RBNZ pause though”.

NZD/USD Levels

Spot is presently trading at 0.8527, and next resistance can be seen at 0.8538 (Hourly 200 SMA), and 0.8548. Next support to the downside can be found at 0.8522 (Daily Low), 0.8517 (Hourly 20 EMA) and 0.8503 (Daily Classic PP).