The NZD/USD pair had a very bullish day on Tuesday, as traders around the world anticipate the Federal Reserve announcing QE3 on Friday. Because of this, most commodities are being bid and risk currencies like the Kiwi are being embraced. It should be noted that the minor resistance level of 0.8350 did stop the surge, and might offer some trouble until we get that announcement (or not) on Friday.
NZD/CHF is an excellent barometer of global risk. The pair rose again, but still seems like the 0,67 level is going to hold this pair in check until we get the above mentioned announcement. Because of this, we feel that this pair could consolidate between 0.64 and 0.67 in the next couple of days. If QE doesn't happen - this pair will fall hard. If it does......we can only watch to see how the rest of the world feels via this classic "risk barometer".
Create a FREE account