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NZD/USD keeps finding buyers circa 0.78

FXStreet (Bali) - NZD/USD found persistent buying interest at the 0.78 vicinity, with price currently at 0.7830 following a test of the round number earlier on the session.

September NZ home price data was published a while ago, with REINZ house price coming at +0.2% m/m vs +1.1% prior. As RBS notes, "a further slowdown in home price growth would likely increase expectations that the RBNZ’s “period of assessment” on interest rates is extended further." It is also important to take note of the next Global Dairy Trade auction on October 15th, in which "a further decline in dairy prices could keep downward pressure on NZD", RBS adds.

Jim Langlands, Founder at FXCharts, notes: "Below 0.7800, would head back to minor support at 0.7780 and 0.7760, although the eventual target will again be at the recent trend low at 0.7707, backed up at 0.7701 (50% of 0.6560/0.8842), but below which would head to the 24 June 2013 low at 0.7682. On the topside, the 100/200 HMA’s lie at 0.7835/45 and these could well cap it today. A break would potentially see a run up to 0.7885 and at 0.7900 although I am not sure that we head above here again for a while."

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