NZD/USD up through hourly 20/50 SMA’s

By FXStreet FXStreet (Guatemala) – A significant run in NZD/USD to the upside was made in early Asia, rising through the hourly 20 and 50 SMA from 0.6340 the low and broke yesterday’s Asian highs of 0.6367.

Risk appears to be on, with the commodity currencies on the up and the Yen weakening across the board. S&P futures are in the green, +0.24%, after a positive close on Wall Street. However, there is and air of dovishness around the Fed for this month, bolstering US equities that could be supportung the dollar short – medium term evetually but potentially problematic for the greenback longer term if yeilds evetually decline. Analysts at Rabobank explained that the developments in August are not likely to have boosted the Fed’s confidence in the inflation outlook.

There were some headline on Bloomberg in respect to an interview with Fonterra’s Managing Director Global Ingredients, Kevin Wickham in New Zealand’s ‘Rural News’, who said that demand should pick up as inventories deplete, but may take several months to do so, attracting a slight bid in the bird. Yesterday, the Global dairy trade index rose +10.9%, up for the 2nd consecutive auction, but the analysts at TD Securities …read more

Source:: FX Street