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Sep 15, 2014
NZD/USD: No sign of dip buyers yet...
FXStreet (Bali) - NZD/USD is trading hands with no change on its rate compared to last Friday's NY close, currently at 0.8146 vs 0.8141.
The unwinding of long-held carry trades, coupled with massive selling pressure on the Aussie/US Dollar, and a slightly more dovish RBNZ last week, with the next OCR hike not expected until later Q1 2015, kept the NZD unloved by market participants ahead of next Saturday's New Zealand general election, next key event for the Kiwi.
Jim Langlands Founder at FXCharts, commented on the Kiwi: "A steep fall is unlikely ahead of the FOMC on Wednesday, although the weak Fonterra Milk auctions have recently been a key driver of the Kiwi and there is another one on Tuesday which could add further downside pressure. A hawkish Fed would quickly see US yields head higher, causing the Kiwi and the commodity bloc to head sharply lower."
The unwinding of long-held carry trades, coupled with massive selling pressure on the Aussie/US Dollar, and a slightly more dovish RBNZ last week, with the next OCR hike not expected until later Q1 2015, kept the NZD unloved by market participants ahead of next Saturday's New Zealand general election, next key event for the Kiwi.
Jim Langlands Founder at FXCharts, commented on the Kiwi: "A steep fall is unlikely ahead of the FOMC on Wednesday, although the weak Fonterra Milk auctions have recently been a key driver of the Kiwi and there is another one on Tuesday which could add further downside pressure. A hawkish Fed would quickly see US yields head higher, causing the Kiwi and the commodity bloc to head sharply lower."