18 Aug 2015
NZD/USD retakes 0.6600, Russia ban lift on NZ dairy underpins
FXStreet (Mumbai) - NZD/USD took a breather in its upsurge and consolidates near 0.66 handle in the mid-Asian trades, after the Kiwi spiked higher following the news of Russia partly lifting a ban on NZ dairy product.
NZD/USD faces strong resistance near 0.6605 levels
Currently, the NZD/USD pair rises 0.35% to 0.6595, easing-off session highs reached at 0.6605. The NZD/USD pair remained strongly bid and rallied nearly 40 pips after Russia announced partial lift on the ban imposed on NZ dairy which had been operating for 2 years.
Russia now decided to allow 29 New Zealand companies to sell dairy products to Russia, raising hopes for New Zealand's embattled dairy sector.
Moreover, a better bid Aussie post RBA along with a broadly muted US dollar also supports the ongoing strength in the Kiwi.
Meanwhile, markets now await key US housing data due later today while NZ GDT price index will be closely watched for further momentum on the pair.
FX Strategists at ANZ believe, "Indicators are suggesting dairy prices will bounce, which risks a short-term NZD squeeze, but any dairy bounce just removes exaggerated negative risks and the outlook for monetary policy is unchanged."
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6619 (Aug 4 High) levels and above which it could extend gains 0.6656 (Aug 12 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).
NZD/USD faces strong resistance near 0.6605 levels
Currently, the NZD/USD pair rises 0.35% to 0.6595, easing-off session highs reached at 0.6605. The NZD/USD pair remained strongly bid and rallied nearly 40 pips after Russia announced partial lift on the ban imposed on NZ dairy which had been operating for 2 years.
Russia now decided to allow 29 New Zealand companies to sell dairy products to Russia, raising hopes for New Zealand's embattled dairy sector.
Moreover, a better bid Aussie post RBA along with a broadly muted US dollar also supports the ongoing strength in the Kiwi.
Meanwhile, markets now await key US housing data due later today while NZ GDT price index will be closely watched for further momentum on the pair.
FX Strategists at ANZ believe, "Indicators are suggesting dairy prices will bounce, which risks a short-term NZD squeeze, but any dairy bounce just removes exaggerated negative risks and the outlook for monetary policy is unchanged."
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6619 (Aug 4 High) levels and above which it could extend gains 0.6656 (Aug 12 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).