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8 May 2013
Forex: NZD/USD succumbs below 0.84; RBNZ selling the Kiwi
FXstreet.com (Barcelona) - The New Zealand slump over 50 pips in the last minute after the RBNZ's Governor Wheeler said the central bank has been selling the Kiwi, which remains near mulit-year highs vs the US Dollar.
Wheeler also said the RBNZ is capable of further intervention, which is designed to take top off the currency. NZD/USD broke through 0.84 round level to set a new 2-week low at 0.8384.
Next evident area of support comes at 0.8360/65, as per bounces seen on April 4 and April 23. The hard fall is now likely to create a liquidity vacuum to the upside, which may offer some potential short term corrective move before sellers are able to re-group again, with 0.8425 ( 50% fib rom latest fall) ahead of 0.8440/50 congestive area next hurdles.
Wheeler also said the RBNZ is capable of further intervention, which is designed to take top off the currency. NZD/USD broke through 0.84 round level to set a new 2-week low at 0.8384.
Next evident area of support comes at 0.8360/65, as per bounces seen on April 4 and April 23. The hard fall is now likely to create a liquidity vacuum to the upside, which may offer some potential short term corrective move before sellers are able to re-group again, with 0.8425 ( 50% fib rom latest fall) ahead of 0.8440/50 congestive area next hurdles.