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17 Apr 2013
Forex: Kiwi recover some losses as risk assets find buyers
FXstreet.com (Barcelona) - The Kiwi recovered some ground today, closing the NY session up 67 pips at 0.8487. The US Dollar Index was weaker across the board, closing at its lowest level since February 28th. Even the metals and energy complex, which have seen severe declines the last few days, managed to finish slightly higher on the day after overcoming early weakness during the Asia session . US Equities again outperformed, recovering nearly all of yesterday’s losses and closing up 1.41% at 1574.57. Market participants should be aware of NZD CPI (est. 0.4%) later in the session due out at 22:45.
“The dollar weakened across the board today as yesterday’s flight to quality was largely reversed during the US trading day. EUR/USD rose on heavy volume, traders reported, working through both the 55-day and 100-day moving averages and extending gains as high as 1.3200. Hedge funds were the primary buyers, contacts relayed. 1.3202 was the high. Commodity currencies rose against the dollar and JPY as risk aversion was unwound. Commodities themselves saw smaller rebounds, with crude ending at $88.75 (WTI) and gold at $1365.50, noted Jamie Coleman of FXBriefs.com
From a technical perspective, the pair was able to recover the 0.8480 (important weekly level), but will still need to find additional follow through in order to negate the sell signals triggered the previous two days. If the pair is able to close and build value above 0.8510 (the 9 dma), it should help open the doors for a re test of 0.8600. First support remains at 0.8480 (above mentioned level), followed by (bullish engulfing candle on 1 hour chart).
“The dollar weakened across the board today as yesterday’s flight to quality was largely reversed during the US trading day. EUR/USD rose on heavy volume, traders reported, working through both the 55-day and 100-day moving averages and extending gains as high as 1.3200. Hedge funds were the primary buyers, contacts relayed. 1.3202 was the high. Commodity currencies rose against the dollar and JPY as risk aversion was unwound. Commodities themselves saw smaller rebounds, with crude ending at $88.75 (WTI) and gold at $1365.50, noted Jamie Coleman of FXBriefs.com
From a technical perspective, the pair was able to recover the 0.8480 (important weekly level), but will still need to find additional follow through in order to negate the sell signals triggered the previous two days. If the pair is able to close and build value above 0.8510 (the 9 dma), it should help open the doors for a re test of 0.8600. First support remains at 0.8480 (above mentioned level), followed by (bullish engulfing candle on 1 hour chart).