NZD/USD regains momentum, testing highs near 0.6340

FXStreet (Mumbai) - NZD/USD defends gains on the 0.63 handle as we progress towards the New York session, with all eyes set on the upcoming macro releases to provide further momentum.

NZD/USD supported at 0.6300

Currently, the NZD/USD pair trades 0.11% higher at 0.6337, retracing from fresh session highs hit at 0.6341 some minutes ago. The Kiwi spiked higher ahead of US open as the greenback turned into the red zone before the release of the US retail sales and industrial production numbers, with both expected to come in lower than the previous reading.

Looking ahead, Fonterra’s GDT prices index and a set of US economic data due later today will be closely watched for fresh incentives on the Kiwi.

Dairy prices are expected to improve at this week's auction, but doubts remain as to how much further improvement is in store.

Markets are expecting a 10% gain in the GDT trade weighted index after a 10.9% gain at the last auction on September 2 and a 15% gain for whole milk powder against a 12.1% gain to US$2078 a tonne.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6369 (20-DMA) levels and above which it could extend gains to 0.6400 (Sept 10 High) levels. To the downside immediate support might be located at 0.6300 (Today’s Low) below that at 0.6268 (Sept 4 Low).

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