19 Aug 2015
NZD/USD now testing critical support
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6586 with a high of 0.6588 and a low of 0.6582.
NZD/USD was better bid overnight with the dairy prices offering the bird a lift where the GlobalDairyIndex rose more than 10% after today’s auction. A bottom has been called by some analysts in the market for the time being with today reducing the downside risk to Fonterra’s latest milk price forecast of $3.85/kg MS for 2015/16. However, farmers will be preparing for the best and the worst to come yet.
Otherwise, the price in the bird met supply after a brief score on the 0.66 handle and it has resumed the downside to test 0.6580 support currently. We had the release of third tier numbers in the producer prices in early Asia for Q2 with output falling line at -0.2% and input -0.3% vs -0.5%. For now the price holds at the aforementioned support while we await the showdown in the US CPI numbers and the FOMC minutes.
NZD/USD a sell on rallies?
Technically, the strength on rallies has been limited and may be offering opportunities to get shorter in an otherwise broadly bearish chart with a period of stability from mid July to current environment while RSI (14) is in neutral at 51 with MACD offering a bearish bias on the hourly.
NZD/USD was better bid overnight with the dairy prices offering the bird a lift where the GlobalDairyIndex rose more than 10% after today’s auction. A bottom has been called by some analysts in the market for the time being with today reducing the downside risk to Fonterra’s latest milk price forecast of $3.85/kg MS for 2015/16. However, farmers will be preparing for the best and the worst to come yet.
Otherwise, the price in the bird met supply after a brief score on the 0.66 handle and it has resumed the downside to test 0.6580 support currently. We had the release of third tier numbers in the producer prices in early Asia for Q2 with output falling line at -0.2% and input -0.3% vs -0.5%. For now the price holds at the aforementioned support while we await the showdown in the US CPI numbers and the FOMC minutes.
NZD/USD a sell on rallies?
Technically, the strength on rallies has been limited and may be offering opportunities to get shorter in an otherwise broadly bearish chart with a period of stability from mid July to current environment while RSI (14) is in neutral at 51 with MACD offering a bearish bias on the hourly.