New Zealand Dollar Surges After Release of Quarterly GDP
UFXMarkets | Mar 21, 2013 06:32AM ET
Wall Street closed the trading day with stronger numbers in response to decreased anxiety over Cyprus and in response to the Federal Reserve’s decision to keep the interest rate unchanged and maintain stimulus measures. The Dow Jones gained by 0.39%, the NASDAQ by 0.67%, and the S&P 500 by 0.71%. Facebook fell by 2.96%, closing at $25.90. Technically, according to the 8-hour chart, the S&P has a strong resistance level at 1,560; should the index cross above this level, it could hit record highs. The trend for the Dow Jones will remain bullish as long as the index trades above the support level of 14,400.
US Dollar (USD)
The US Dollar traded mixed against most major currencies after the Federal Reserve kept the interest rate unchanged at 0.25% and maintained the bond buying program of $85B per month. The Fed also announced that the economy has returned to moderate growth. Unemployment Claims are expected at 343k vs. 332k previously, Existing Home Sales at 5.02M vs. 4.92M previously, and the Philadelphia Fed Manufacturing Index at -1.6 vs. -12.5 previously.
Gold
Gold declined by 0.36%, closing at $1,606 an ounce in response to the Federal Reserve’s forecast on the unemployment rate. Technically, according to the 1-hour chart, the precious metal formed a “Double Top” pattern, which indicates a possible trend reversal. Should Gold break below the support level of 1,602, it could again drop towards the 1,580 area.
Last: 1607
Resistance 1615 1637 1655
Support 1602 1602 1588
Crude Oil
Crude Oil rose by 0.89%, closing at $93.40 a barrel amid an unexpected drop in Inventories, which came out much lower than expected. Technically, Oil is expected to maintain the bullish trend and retest the resistance level of $94.40; should the commodity break above this level, it could move towards the next resistance area, at $96.20.
Last: 93.20
Resistance 93.50 94.40 95.00
Support 92.40 91.70 90.80
Euro (EUR)
The euro gained versus the US Dollar after Cyprus was given more time to find a solution to its banking crisis. The Fed’s ongoing bond buying program also helped the euro to consolidate above the support level of 1.2900. The Current Account came out at 14.8B, better than the expected 7.9B; the German 10-y Bond Auction was set at 1.36%. Technically, the trend for the EUR/USD remains bearish as long as the pair trades below the resistance level of 1.2970. However, should it cross above this level, we might see the pair advancing towards 1.3040 levels once again. The German Flash Manufacturing PMI is expected at 50.8 vs. 50.3 previously.
Last: 1.2945
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Resistance 1.2970 1.3020 1.3080
Support 1.2910 1.2855 1.2770
British Pound (GBP)
The Pound finished the trading day unchanged in spite of very high volatility. Although the Pound dropped to 1.5030 levels just before the release of MPC Meeting Minutes, it surged by more than 120 pips following the Finance Minister’s decision to make cuts to the government’s budget. The Claimant Count Change was released at -1.5k, worse than the expected -5.2k, and the Unemployment Rate remained unchanged at 7.8%. Technically, the Pound is trading in a channel between the support level of 1.5040 and the resistance level of 1.5180; should the GBP/USD breach this level, it could move towards the next resistance level of 1.5270. Retail Sales are expected at 0.5% vs. -0.6% previously, Public Sector Net Borrowing at 8.4B vs. -9.9B previously.
Last: 1.5125
Resistance 1.5170 1.5220 1.5300
Support 1.5040 1.4970 1.4920
New Zealand Dollar (NZD)
The New Zealand Dollar surged after the release of the quarterly GDP, which came out at 1.5% vs. the expected 0.9%, indicating a significant improvement in the country’s economy. Technically, according to the one-hour chart, strong resistance level is located at 0.8280. Should the pair cross above this resistance level, it could move towards the next resistance level of 0.8340. No important economic data is expected to be released in New Zealand today.
Last: 0.8260
Resistance 0.8280 0.8330 0.8400
Support 0.8210 0.8160 0.8100
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