Forex: Pacifics pushed by rising Bullion

on December 23 2009 10:37 PM

FXstreet.com (London) - NZD/USD has returned to bullish territory after retreating on weak growth indicated by GDP figures last session. The pair has broken through its trading range and currently trades at 0.7057, up 15 pips from the open.

NZD and AUD hold a high level of correlation. Australia is a key importer for New Zealands export industry, being geographically the closest major economy. Gold and AUD also are closely tied.

Gold has moved aggressively to the upside this session, retesting $1100, and currently teetering around that level. As such, AUD has followed up 25 pips on the session, and likewise NZD has followed.

AUD and NZD can be an effective proxy to trading gold without the associated costs of trading a physical commodity.

For resistance on the rising Kiwi, we mark, 0.7082 (strong consolidation 17-21 Dec) and 0.7115 ( secondary consolidation range during 17-21 trading). In the case of a reversal we see the primary support level as 0.7016 (previous session low 23 Dec).

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