NZD/USD kiwi surges after news in China and ECB decision

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NZD/USD kiwi surges after news in China and ECB decision

FITITOL--> FXstreet.com (Barcelona) - The kiwi has pulled a 180 degree turn and is now surging against the greenback following news that China cut its benchmark lending rate 31bps to 6% and a favorable outcome in the ECB (Interest rate was decreased from +1.00% to +0.75%, which equaled expetations). Thursday has been quite volatile for the pair, which has traded between a low of 0.8011 and a high of 0.8065.

Investors of the kiwi look ahead to next week where the NZ event calendar is much busier than the week in progress. This should offer a refreshing change of pace for the kiwi during a week that was seemingly dominated by ECB speculative movements. On Tuesday, quarterly business opinion survey has the potential to move the pair and according to Sean Callow, a Strategy Analyst at Westpac, “the quarterly version is a better predictor of activity than is the monthly, so any significant declines in its components could cause some NZD selling.” Sticking with Tuesday, electronic spen ding and house prices measures in NZ will also be reported, while Manufacturing PMI, food prices and monthly consumer confidence (Thu) and house sales will complete the week.

Briefing the technicals, the cross is presently trading in the region of 0.8065, advancing steadfastly at a rate of +0.35%. ICN.com technical analysts confirm the next short-term resistances at 0.8080, followed by 0.8135, and ultimately 0.8160. Should this rally be extinguished, the a breach of 0.8015 will initiate supports in 0.7985 and finally 0.7905.