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NZD/USD on the offer ahead of FOMC outcome

FXstreet.com (London) - NZD/USD is struggling to maintain the upper proportion of the 0.82 handle, contained by the descending resistance line on the daily chart.

From the economy, strategists at TD Securities explained that the NZ fiscal update revealed better budget data. “This year’s budget halved (to 0.5% of GDP) and a small surplus for next year, possibly paving the way for a credit upgrade, we think”. Meanwhile, as the team also noted, the FOMC meeting gets underway today (concludes Wednesday with a press conference). “While markets view a taper decision this week as possible, it is not viewed as probable—indeed, our base case calls for tapering to start in January (USD15 bn reduction in asset purchases)”.

NZD/USD Levels

The 20 DMA is 0.8229, the 50 DMA is 0.8291, the 200 DMA is 0.8165. RSI (14) reads 42.07. Supports are ascending from 0.8084, 0.8140 and 0.8198. Spot is 0.8254 while resistances are 0.8280, 0.8288, 0.8320, 0.8345 and 0.8368.

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