Forex: NZD/USD: NZ card spending up 8.6% y/y

on Dec 10, 2013
Updated: Oct 21, 2019
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_iNVEZZ.com: Tuesday, December 10th:_ The NZD/USD yesterday opened at 0.8286 and rose to its highest level since 20 November, at 0.8320. Then the price depreciated to an intraday low of 0.8256 before rebounding to close at 0.8277, logging a 0.09 percent loss. The price action formed a spinning top candlestick pattern, indicating market indecision.

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Thus far today the pair has been trading within the 31-pip range of 0.8301 to 0.8270. At the moment the quote is at 0.8276.
The 89- and 200-period simple moving averages are floating below the price action on the 1H, 4H, daily and weekly charts, indicating overall bullish sentiment. On the same time frames the MACD (9, 12, 1) indicator is positive, also showing bullish pressure.

The daily stochastic oscillator though is right above its 80-line, indicating overbought market conditions and suggesting a fall is in prospect.

Saint Louis Fed president and Federal Open Market Committee member James Bullard yesterday said that the likelihood has risen of stimulus trimming with ongoing improvement in the US labour market but that in his view an initial reduction would be modest in line with persistently low inflation.

A keen proponent of quantitative easing, Bullard observed that if inflation failed to get up to target levels the Fed could pause tapering in the future. Bullard’s words have generated heightened expectations in currency markets that stimulus tapering will be decided at the FOMC’s 17-18 December meeting.
According to Paymark, which processes three-quarters of New Zealand’s electronic payment transactions, New Zealanders are spending up large on food and liquor as this Christmas approaches. Data released early today UTC show credit and debit card spending during the first week of December up by 8.6 percent on the same week last year.

Paymark’s Mark Spicer observes: “The extra spend in the first seven days of December on food and liquor has been noticeable this year, suggesting people are keen to stock their cupboards for Christmas meals and socialise with family and friends.” It’s a positive sign, believes Spicer, given that “there is still a way to go before the big Christmas rush sets in”.
Resistances today: 0.8300, 0.8325 and 0.8345.
Supports: 0.8240, 0.8220 and 0.8200.
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