Jump to content

COZfx: NZD/USD weekly outlook for October 20 - 24


kiriss5678

Recommended Posts

COZforex: The New Zealand dollar declined against its US counterpart on Friday, as upbeat US economic data boosted demand for the greenback.

NZD/USD hit a daily low of 0.7877 on Friday, before subsequently consolidating at 0.7917 by close of trade on Friday, down 0.45% for the day but still 1.3% higher for the week. COZforex senior currency strategist Ian • Quigley said, NZD/USD is likely to find support at 0.7805, the low from October 15, and resistance at 0.7996, the high from October 16.

The greenback was boosted after a report showed that the University of Michigan’s consumer sentiment index unexpectedly rise to 86.4 in October, the most since July 2007. Another report showed that US housing starts rose more than expected in September, bolstering the outlook for the sector.

The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.33% to 85.31 late Friday, but still ended the week lower, its second consecutive weekly decline.

Data from the Commodities Futures Trading Commission released Friday showed that speculators turned bearish on the New Zealand dollar in the week ending October 14. Net shorts totalled 2,384 contracts, compared to net shorts of 100 in the preceding week.

In the week ahead, investors will be awaiting US data on consumer price inflation and new home sales for fresh signals on the strength of the economic recovery.

Market players are also looking ahead to a raft of Chinese economic data later this week, including reports on third quarter gross domestic product, as well as data on industrial production and retail sales.

(COZ forex UK)

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...