15 Mar 2016
NZD/USD tests 200-DMA ahead of GDT auction
Broad based USD strength pushed NZD/USD to 200-DMA at 0.6622 ahead of Global Dairy Trade (GDT) auction.
Weak US data ignored
The pair stays under pressure despite dismal US data release as investors consider a possibility of Fed signaling rate hike this year.
The immediate focus now is on the GDT auction. Prices at last auction rose 1.4% and thus had put an end to four consecutive weak auctions. Another rise in GDT price index today would bode well for the Kiwi, but scope for a sharp rise is limited, given RBNZ’s dovish forward guidance and caution ahead of tomorrow’s FOMC rate decision.
NZD/USD Technical Levels
A break below 0.6622 (200-DMA) would open doors for a drop to 0.66 handle (also 50-DMA). On the other hand, a break above 0.6650 (rising trend line hurdle) could see the spot re-test daily high of 0.6684.
Weak US data ignored
The pair stays under pressure despite dismal US data release as investors consider a possibility of Fed signaling rate hike this year.
The immediate focus now is on the GDT auction. Prices at last auction rose 1.4% and thus had put an end to four consecutive weak auctions. Another rise in GDT price index today would bode well for the Kiwi, but scope for a sharp rise is limited, given RBNZ’s dovish forward guidance and caution ahead of tomorrow’s FOMC rate decision.
NZD/USD Technical Levels
A break below 0.6622 (200-DMA) would open doors for a drop to 0.66 handle (also 50-DMA). On the other hand, a break above 0.6650 (rising trend line hurdle) could see the spot re-test daily high of 0.6684.