NZD/USD moves with bearish bias ahead of key risk events

FXStreet (Guatemala) - NZD/USD is trading at 0.7642, down -0.24% on the day, having posted a daily high at 0.7666 and low at 0.7630.

NZD/USD offers are stretched short term yet continue to weigh heavy on the daily outlook as the greenback continues to gather pace despite giving back some of its gains at the start of this week. Meanwhile, this week depends upon a possible announcement from Fonterra regarding its milk payout forecast and the RBNZ’s Monetary Policy Statement.

A modest Fonterra downgrade to around $5.00 would probably not cause a market reaction but a shift to around $4.80 probably would, as suggested by Imre Speizer, chief analyst at Westpac Banking Corporation ABN while he also was explaining the RBNZ’s MPS on Thursday morning is likely to lower its interest rate forecast from its previous update in September. On the basis of the downside, levels are found at 0.7636 (Weekly Classic S1), 0.7630 (Daily Low), 0.7623 (Yesterday's Low), 0.7621 (Daily Classic S1) and 0.7582 (Daily Classic S2).

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