FBS: the pair NZD/USD has renewed the record maximum (Westpac)
New Zealand’s dollar reached today the record maximum versus its American counterpart at $0.8674.
The sentiment all over the world improved after yesterday’s EU summit and investors seem to be optimistic on Greece. Analysts at Westpac claim that market’s attention will now switch to the US debt problems. In their view, the greenback will be declining until American debt ceiling is lifted up.
In the near term resistance for the pair NZD/USD is found at $0.8700, while support for the pair is situated at $0.8575.
Credit Suisse Group AG index based on swaps shows that the market expects the Reserve Bank of New Zealand to raise the interest rates during the next year by 94 basis points – that’s the maximal estimate since November.
New Zealand’s CPI rose gained 5.3% in the second quarter on the annual basis making the biggest advance since 1990. The RBNZ will hold a policy meeting on July 28.
Never the less, it’s necessary to be cautions with the long positions as kiwi is currently overvalued and technical indicators show that it’s rate has risen too quickly and risks to reverse.
Chart. H4 NZD\/USD
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