NZD/USD: sideways in a tight spot of consolidation

By FXStreet FXStreet (Guatemala) – NZD/USD has started to consolidate the downside after a mixed US session on mixed greenback, and stocks.

Commodities, on the other hand, were more decisive and lower and were not enabling the bulls take charge in the bird. It is hard to see a clearing out of the woods yet while the Chinese crisis is not something that will go away overnight. On the other hand, most of the shock has been absorbed and there is room for consolidation and a drift higher in the near term until another shock can trigger further sharp declines.

Overall, the issue for the bird is one of interest rates, after all else that is. The RBNZ’s inflation target of 2% will likely remain under pressure and could have the Central Bank to act and cut interest rates again in 2016 and below the record lows since the OCR was introduced. Analysts at Westpac do not feel the RBNZ will act until later in the year until June and then again in September to net 2.0% OCR. NZD/USD levels

NZD/USD levels

Technically, the sma 50 at 0.6575 is first resistance before 0.6590 and the 20 sma on the …read more

Source:: FX Street