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NZD/USD has staged a decent rally off the......>

KIWI
KIWI: NZD/USD has staged a decent rally off the YtD low touched on Oct 1, but
participants are on the alert for any weakness in the underlying impetus.
Momentum studies encourage caution as RSI is in overbought territory, while
stochastics have recently posted a bearish turn. The rate is testing resistance
from a downtrend drawn off the Apr 13 2018 high. Consolidation above there would
reinforce the bullish case, but two consecutive Doji candlesticks charted over
the last two sessions sent a warning signal. Should more such signals appear,
the 200-DMA would provide the initial downside target after it helped the rate
build up a base during a brief consolidation period halfway through this month.
- The rally was aided by RBNZ's unexp. decisions to leave the OCR on hold in Nov
& then to give banks more time to raise capital buffers, NZ gov't's fiscal
stimulus package and (with all caveats) U.S.-China trade truce. This week throws
up several important data releases; the ANZ survey showed that recovery in
business sentiment has been sustained and on Friday we will learn if consumer
confidence has followed suit. New Zealand's Q3 GDP hits on Thursday.
- See chart at: https://emedia.marketnews.com/marketnewsintl/NZDUSD17122019.png

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