Guys, this is my analysis on the NZD USD.
As mentioned in earlier posts, I had noticed that all the commodities pairs was experiencing support throughout the period of pro-USD sentiment due to speculation on whether the Federal Reserve will taper its QE sooner rather than later.
US datas were closely watched throughout this week, and when the "Initial Jobless claims" reading came out it was not too far off from the forecast, which told me that the market had already priced in the movement hence the strength in the NZD USD. However, 1 and a half hours later, "Pending Home Sales" came out stronger than expected, much much stronger, and this served to strengthen the USD, which dragged this pair down. After that down move, however, NZDUSD has found renewed support. Given the nature of the price action within this week, I will continue looking for short opportunities in this pair as the larger trend is still down as I can see from the charts.
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