GBP/USD:Pulled Away From 10-Month Low After Survation Poll.
- The poll, carried out by Survation for the Daily Record newspaper, showed 47% intending to vote "Yes" while 53% intend to vote against. The figures excluded 10% of people who were undecided. In the past few days, the GBP has come under sustained pressure after polls suggested that the pro-independence camp was gaining momentum. The numbers were the same as a prior Survation poll for the Scottish Daily Mail published on August 29.
- The GBP tripped stops above 1.6231 (Wednesday high) and rose to an European high of 1.6265. The GBP/USD bears are targeting the level of 1.6003 (50% of 1.4814-1.7192). In the opinion of GrowthAces.com bears should be cautious as we see a risk for corrective action (or even change of the trend) in the short-term. The nearest resistance is at 1.6270. We remain flat on the GBP/USD.
Significant technical analysis' levels:
Resistance: 1.6270 (high Sep 8), 1.6279 (38.2% of 1.6645-1.6052), 1.6340 (high Sep 5)
Support: 1.6052 (low Sep 10), 1.6003 (50% of 1.4814-1.7192), 1.5988 (low Nov 14, 2013)
NZD/USD:Rates On Hold, As Widely Expected.
- New Zealand's central bank held its benchmark interest rate at 3.5%, as expected, and said it expected to stay on the sidelines for a while amid slower growth and soft inflation pressures before resuming rate rises.
- Still, the RBNZ expects dairy prices to recover, and is predicting economic growth around 3.2% in the year ending March 2015. The central bank cut its inflation views through early 2016, due to subdued wage increases and the dampening effect of a stronger currency. The central bank is the opinion that current levels of the NZD/USD are unjustified despite its retreat from a post-float high touched in July.
- The bank said in the statement: “We expect some further policy tightening will be necessary to keep future average inflation near the 2% target mid-point and ensure that the economic expansion can be sustained.”
- In the opinion of GrowthAces.com the next rate hike is likely in March next year. We expect benchmark interest rate at the end of 2015 at the level of 4.25%.
- The NZD/USD slumped after the RBNZ decision. The dovish tone of the RBNZ and breaking below the level of 0.8200 opened the door to a test of 0.8050 (the year’s low) renewed downward pressure on the NZD/USD. In our opinion the short-term outlook is bearish.
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Significant technical analysis' levels:
Resistance: 0.8267 (high Sep 10), 0.8286 (high Sep 9), 0.8329 (high Sep 8)
Support: 0.8052 (low Feb 4), 0.8009 (low Sep 10, 2013), 0.8000 (psychological level)