13 Aug 2015
NZD/USD drops to 0.6570 on stronger USD, S&P -Fonterra news
FXStreet (Mumbai) - NZD/USD gave back almost a quarter of its previous rally in the mid-European trades, as the Kiwi pair received a double blow in form of a stronger US dollar and on news that Fonterra is placed on credit watch negative by S&P rating agency.
NZD/USD extends declines below 0.6600
Currently, the NZD/USD pair drops -0.67% to fresh session lows of 0.6571, having faced rejection near 0.6650 levels. The NZD/USD pair remains heavily sold-off as a stronger greenback as Sept rate hike bets are back on the table as PBOC-led uncertainty wanes.
Moreover, news that S&P rating agency placed the dairy giant Fonterra rating on credit watch negative, noting high debt levels and financial troubles in the dairy giant as key reasons for the move, also had a major negative impact on the Kiwi.
Meanwhile, markets now await key US economic release later today for further momentum on the pair while NZ retail sales data due tomorrow will also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (Aug 12 High) levels and above which it could extend gains 0.6683 (July 31 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).
NZD/USD extends declines below 0.6600
Currently, the NZD/USD pair drops -0.67% to fresh session lows of 0.6571, having faced rejection near 0.6650 levels. The NZD/USD pair remains heavily sold-off as a stronger greenback as Sept rate hike bets are back on the table as PBOC-led uncertainty wanes.
Moreover, news that S&P rating agency placed the dairy giant Fonterra rating on credit watch negative, noting high debt levels and financial troubles in the dairy giant as key reasons for the move, also had a major negative impact on the Kiwi.
Meanwhile, markets now await key US economic release later today for further momentum on the pair while NZ retail sales data due tomorrow will also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (Aug 12 High) levels and above which it could extend gains 0.6683 (July 31 High) levels. To the downside immediate support might be located at 0.6515 (Aug 11 Low) below that at 0.6499 (Aug 6 Low).