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COZfx: NZD/USD weekly outlook

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COZfx: NZD/USD weekly outlook

Postby dwang » Mon Dec 23, 2013 2:35 am

COZforex: The New Zealand edged modestly higher against its US counterpart on Friday, but gains were limited after the Federal Reserve said it will begin reducing its stimulus program next month.

NZD/USD declined to 0.8149 on Friday, the pair’s lowest since December 6, before subsequently consolidating at 0.8200 by close of trade, up 0.1% for the day but 1.01% lower for the week. COZforex senior currency strategist Ian • Quigley said, NZD/USD is likely to find support at 0.8149, Friday’s low and resistance at 0.8288, the high from December 18.

Demand for the greenback remained supported after the Fed said Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January, amid indications of an improving US economy.

The US central bank reiterated that interest rates are likely to remain low even after the unemployment rate declines below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.

On Friday, the Commerce Department said that the US economy expanded by 4.1% in the third quarter, well above initial estimates for 3.6% growth, adding to signs that the economic recovery is deepening.

Meanwhile, in New Zealand, official data released Thursday showed that the country’s gross domestic product rise 1.4% in the third quarter, beating expectations for a 1.1% expansion, after an upwardly revised 0.3% increase in the three months to June.

In the week ahead, the US is to release key reports on durable goods orders, new home sales and jobless claims.

(COZ forex UK)
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