FXstreet.com (London) - New Zealand Dollar, currently trading down 3 pips against the Greenback at 0.7209, remained relatively umoved in early Asian trading. This comes despite positive stockmarkets, supported by the banking sector. which was boosted today by global banking regulators delaying new capital requirements on banks.
Bullish stockmarkets (Nikkei +1.2%) encourage investors to choose riskier, high-yielding assets, assets such as the Kiwi.
Kiwi has ran bullish throughout this year, rising unabated since q1, and the strength of the currency is damaging exoprters competitiveness. Looking to 2010 the Central Bank, the RBNZ, will look to continue to help and control the economy by adjusting monetary policy.
The Kiwi has largely traded range bound this session between 0.7205 and 0.7215, and this is likely to continue into the session as investors await insights from the FED. In the case of the breakout we see primary support at 0.7184 (Dec 15 Low) and resistance on the upside at 0.7261 (Strong support line in previous Asian session, also general trendline for the previous session as pair traded sideways throughout).