20 Jul 2015
NZD/USD chop around GOLD price shocker, awaits RBNZ
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6521 with a high of 0.6536 and a low of 0.6510.
NZD/USD has been a chop over the recent Gold shocker (down over $51.00 in a minute) where the price dropped out of thin air, in an extension of the recent bearishness and despite the safe haven roll that the yellow metal would usually play in the recent risk-off markets. The downside in the commodity sector is being underpinned here while the greenback is underdemand leaving the bird even more exposed to supply as we head in towards the RBNZ this week.
A big blow to the bird last week was Fonterra’s GlobalDairyTrade price index that dropped 10.7% and leaves markets in anticipation that the RBNZ will have little choice but to cut the OCR again, a second time since 11th June this year. The key to the meeting with be the accompanying statement to understand how much more the bank feels may be required for when the next meeting comes around on 10th September and subsequent meetings thereafter. Technically, 0.6510 guards the handle and opens 0.6417 and May 2009 highs while the upside needs to cross 0.7200 to elevate downside pressures.
NZD/USD has been a chop over the recent Gold shocker (down over $51.00 in a minute) where the price dropped out of thin air, in an extension of the recent bearishness and despite the safe haven roll that the yellow metal would usually play in the recent risk-off markets. The downside in the commodity sector is being underpinned here while the greenback is underdemand leaving the bird even more exposed to supply as we head in towards the RBNZ this week.
A big blow to the bird last week was Fonterra’s GlobalDairyTrade price index that dropped 10.7% and leaves markets in anticipation that the RBNZ will have little choice but to cut the OCR again, a second time since 11th June this year. The key to the meeting with be the accompanying statement to understand how much more the bank feels may be required for when the next meeting comes around on 10th September and subsequent meetings thereafter. Technically, 0.6510 guards the handle and opens 0.6417 and May 2009 highs while the upside needs to cross 0.7200 to elevate downside pressures.