NZD/USD re-attempts 0.6800 – fresh 7-week highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The New Zealand dollar trades firmer versus its American counterpart in the mid-Asian session, with NZD/USD witihn reach of 0.68 handle.

    NZD/USD supported well above 200-DMA

    Currently, the NZD/USD pair trades 0.55% higher at 0.6794, testing fresh seven-week highs recorded at 0.6798 in last hours. The bid tone around the Kiwi eased a bit in mid-Asia, although the price trades within a striking distance of daily highs, with the bulls gathering pace for a decisive break above 0.68 handle.

    The New Zealand dollar remains on a stronger footing backed by expectations of another bounce in whole-milk powder at the Fonterra’s dairy auction later today. Moreover, New Zealand’s growth numbers, with markets expecting a 0.8% expansion, building on June-quarter growth of 0.4%, also keeps the NZD underpinned.

    Besides expectations of upbeat NZ fundamentals, the Kiwi also finds support from the rebound in oil prices and the updated assessment of the dairy sector by the RBNZ.

    In the day ahead, the US CPI report and the NZ GDT price index will be closely watched for fresh cues on the pair ahead of Wednesday’s crucial Fed outcome.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6816/19 (daily R1/ Oct 27 High), above which it could extend gains to 0.6852 (daily R2) levels. To the downside immediate support might be located at 0.6752 (200-DMA) below that 0.6725 (10-DMA).
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