New Zealand dollar exchange rate comment September 6, 2010
NZD/USD to trade with positive bias but cautious as market gauges fallout from Saturday''''s 7.1-magnitude earthquake in Christchurch. Trade likely to remain 'within extremely tight ranges today as markets assess the economic impacts and overall situation,' says ANZ Bank senior dealer Alex Sinton. Kiwi underpinned by weak USD sentiment, NZD demand for long-NZD carry trades on stronger risk tolerance, stronger commodity prices. NZD/USD daily chart positive-biased as MACD & stochastics bullish, although latter at overbought. Resistance at 0.7218 (Friday''''s high); breach would target 0.7246 (Aug. 11 high), then 0.7344 (Aug. 6 high) and 0.7356 (Aug. 4 reaction high). Support at 0.7126 (Friday''''s low); breach would temper near-term positive outlook, targeting 0.7093 (Thursday''''s low), then 0.7082 (200-day moving average), 0.7056 (100-day moving average), 0.6983 (Wednesday''''s low) and 0.6962 (Tuesday''''s reaction low).
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