Dollar back above 83USc
Dollar forecast to trade between 80.5USc and 85.5USc this week.
The New Zealand dollar has started the week strongly, trading above 83USc after a wild ride last week.
The dollar is sitting at 83.27USc, trading in a 1c range with the day’s high 83.88USc and the low 82.76USc.
According to a BNZ commentary, the New Zealand dollar “clawed back its losses” from Friday during the evening.
“NZD/USD was dragged higher as risk sentiment improved during the early evening, rallying from 82USc to above 83USc currently.
“Over the week, NZD/USD ended basically unchanged, despite falling below 80USc early in the week.”
BNZ says it is a very light data week locally, so expect the New Zealand dollar to take its cues from offshore.
“The market will be scrutinising the RBA board minutes from their August interest rate decision on Tuesday.
“We expect the minutes to show the RBA is not considering cutting rates anytime soon, in contrast to current market pricing.
“Over the week, initial support on NZD/USD is seen around 80.5USc and resistance around 85.5USc.”
Niko Kloeten
Tue, 16 Aug 2011
Tue, 16 Aug 2011
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Dollar back above 83USc
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