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17 Jul 2013
NZD/USD threatening the 0.7900 level
FXstreet.com (New York) - The NZD/USD foreign exchange rate began Asian trading in sights of the 0.7900 level Wednesday, receiving a fresh impetus from an earlier dairy auction and spiking dairy prices.
At the time of writing, the NZD/USD is settling at 0.7894, notching a modest advance of +0.03%. The pair is presently trading at the 0.7899 resistance (July 10 high), and a break above this level will initiate additional measures of correction at 0.7917 (June 10 high), onto 0.7932 (June 5 low), and 0.7960 (July 11 high).
NZD/USD strategic bias
According to Mike Jones, an analyst at BNZ, “We expect markets to play the waiting game ahead of tonight’s Bernanke testimony. The NZD/USD will take its lead from any shifts in USD sentiment following the testimony, while we also suspect the risk here is for a firming in the greenback. The key level to watch for in the NZD/USD is 0.7900. A daily close above here would pave the way for a move back above 0.8000. Initial support is expected on any pullbacks towards 0.7810.”
In addition, this morning’s GDT dairy auction also bolstered NZD sentiment – dairy prices rose 4.9%, a very positive result given the already high level of prices. Restricted offshore dairy supply remains a key driver. “The upshot is there is now clear upside risk on Fonterra’s current season milk price payout (of $7.00 per kg/ms).” Jones adds.
At the time of writing, the NZD/USD is settling at 0.7894, notching a modest advance of +0.03%. The pair is presently trading at the 0.7899 resistance (July 10 high), and a break above this level will initiate additional measures of correction at 0.7917 (June 10 high), onto 0.7932 (June 5 low), and 0.7960 (July 11 high).
NZD/USD strategic bias
According to Mike Jones, an analyst at BNZ, “We expect markets to play the waiting game ahead of tonight’s Bernanke testimony. The NZD/USD will take its lead from any shifts in USD sentiment following the testimony, while we also suspect the risk here is for a firming in the greenback. The key level to watch for in the NZD/USD is 0.7900. A daily close above here would pave the way for a move back above 0.8000. Initial support is expected on any pullbacks towards 0.7810.”
In addition, this morning’s GDT dairy auction also bolstered NZD sentiment – dairy prices rose 4.9%, a very positive result given the already high level of prices. Restricted offshore dairy supply remains a key driver. “The upshot is there is now clear upside risk on Fonterra’s current season milk price payout (of $7.00 per kg/ms).” Jones adds.