26 Mar 2015
NZD/USD reaches fresh 3-day lows below 100-DMA
FXStreet (Mumbai) - NZD/USD extends its decline in to the third straight session, largely on news that Fonterra is expected to increase offer volumes at GDT auctions which weigh on the Kiwi.
NZD/USD rejected at 0.76
Currently, the NZD/USD pair trades at 0.7582, down -0.32%, having previously posted fresh session lows at 0.7570 levels. NZD/USD continues its long run of losses as the Kiwi edged lower mainly driven by news that Fonterra is likely to increase offer volumes at GDT auctions that reflects higher milk supply, which will drag milk prices lower. Dairy industry is the biggest export earner for the New Zealand’s economy.
Moreover, losses in NZD/USD were accelerated after investment bank Citi Group downgraded its forecasts for the Australian economy dragging down its OZ
counterpart.
However, the downside in the pair remains cushioned on the back of solid recovery seen in oil, gold and copper prices, which continue to support the commodity-backed currency.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7600 levels and above which it could extend gains to 0.7693 (March 25 High) levels. To the downside immediate support might be located at 0.7550 levels below that at 0.7521 (10-DMA) levels.
NZD/USD rejected at 0.76
Currently, the NZD/USD pair trades at 0.7582, down -0.32%, having previously posted fresh session lows at 0.7570 levels. NZD/USD continues its long run of losses as the Kiwi edged lower mainly driven by news that Fonterra is likely to increase offer volumes at GDT auctions that reflects higher milk supply, which will drag milk prices lower. Dairy industry is the biggest export earner for the New Zealand’s economy.
Moreover, losses in NZD/USD were accelerated after investment bank Citi Group downgraded its forecasts for the Australian economy dragging down its OZ
counterpart.
However, the downside in the pair remains cushioned on the back of solid recovery seen in oil, gold and copper prices, which continue to support the commodity-backed currency.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7600 levels and above which it could extend gains to 0.7693 (March 25 High) levels. To the downside immediate support might be located at 0.7550 levels below that at 0.7521 (10-DMA) levels.