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NZD/USD denying the bears for now

FXStreet (Guatemala) - NZD/USD is currently trading at 0.6342 with a high of 0.6367 and a low of 0.6262.

NZD/USD has extended previous gains related to Fonterra and risen up through the 200 SMA on the hourly sticks in a mixed market of risk, while the key US data disapointed bulls and hawks earlier. Durable Goods came in pretty much in line with expectations -2.0% vs -2.3% consensus. A better headline number, but lower revisions.

We now await Yellen speaking at the close of the US session who may not deliver much to excite markets and instigate a trade, sticking to her usual robotic fashion as to purposely not give too much away, but she will be scrutinized for whether she thinks that rates should be raised this year or not when she discusses inflation and monetary policy.

NZD/USD bearish

Analysts at Westpac Banking Corporation explained, "The next major target area is 0.62, a level which provided support during the middle of 2009. If that gave way, we would target 0.60.

The two main factors expected to contribute to NZD/USD weakness during the next few months are RBNZ easing (we expect the OCR to fall to 2.5% by year end and eventually to 2.0%) and eventual Fed tightening."

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