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Eyeing Key Resistance


Maintains A Bullish Tone

KIWI: A tight session for NZD/USD thus far, with the rate testing $0.7000 at
writing. The opening salvos from the G20 haven't provided any real fireworks.
The pair's impressive recent run higher continued on Thursday, as the
Antipodeans outperformed (AUD benefitted from surging iron ore prices), while
the kiwi looked through a soft business confidence print.
- Bulls will be pleased to have cleared the 100-DMA & 0.6700 (although both are
being tested at present), and now set their sights on the 200-DMA/mid-point of
the YtD range at $0.6711/12. Bears looks for a quick move back below the
100-DMA, which would allow them to re-focus on the 38.2% retracement of the move
from the YtD range at $0.6658 & broken downtrend resistance drawn from the Mar
21 high.
- The G20 provides the key point of interest, with the Trump-Xi meeting
(Saturday) providing the focal point. Also worth remembering that the latest
round of off'l Chinese PMIs are due over the weekend. Monday will see attention
revert back to onshore matters with RBNZ Dep. Gov. Bascand set to speak on
macropru matters, while Tuesday's RBA decision could see some spillover.
MNI London Bureau | +44 0203-865-3809 |