NZD rises following strong trade data; traders await US GDP figures
City Index March 27, 2014 3:00 PM
<p>The FX markets have seen minor price adjustments. Equities are trading under pressure following a warning to Russia of further sanctions from President Obama against […]</p>
The FX markets have seen minor price adjustments. Equities are trading under pressure following a warning to Russia of further sanctions from President Obama against further aggression as the Federal Reserve’s annual banking stress tests have revealed concerns for some of Wall Street’s finest.
The equity markets in Asia show positives as rumours circulated that a reserve requirement ratio cut was imminent to support growth. BoJ headlines suggested further stimulus measures could be implemented as early as May to cushion the blow from next month’s sale tax hike. The NZD grabbed the yellow jersey from the Asian session following very strong trade data as the RBNZ’s Spencer suggested that exporters had become accustomed to the strong NZD whilst also admitting that the Christchurch rebuilding project had increased inflation risks.
The UK has once again seen further evidence of a strong domestic economy following the release of retail sales data that in volume terms shows core sales rising 4.2% year on year.
The US data calendar will bring us the GDP reading as the consensus looks for an increase from 2.4% to 2.7% as pending homes sales are expected to increase of 0.2%.
Supports 1.3740-1.3700-1.3670 | Resistance 1.3800-1.3830-1.3880
Supports 101.60-101.20-100.85 | Resistance 102.80-103.05-103.80
Supports 1.6530-1.6500-1.6440 | Resistance 1.6650-1.6720-1.6795