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10 Dec 2014
NZD/USD finds support circa 0.7670
FXStreet (Bali) - NZD/USD found some buying interest off 0.7670 old resistance-turned-support in early Asia, with price now testing offers circa 0.77, on the back of a vicious bounce to 0.7765 on Tuesday.
NZ's Fonterra decided to cut the 2014/15 forecast farmgate milk price to NZD 4.70/Kg from NZD 5.30/Kg early Wednesday in New Zealand, a negative input for the Kiwi, providing some relief for those short NZD/USD. As Jim Langlands, Founder at FXCharts, notes: "Fonterra also noted that milk supply remains greater than demand and that there is still considerable volatility in global dairy markets which added to the downside pressure."
Technically, Jim notes: "On the topside, the 100 HMA (0.7715) will act as resistance ahead of the session high, which in turn lies just ahead of the 200 HMA at 0.7775. The downside will see bids all the way down to the low of 0.7608. If we break 0.7600, which I am a bit doubtful of doing today, the Kiwi could then begin to accelerate towards the next major Fibo support at 0.7430 (61.8%). This seems unlikely before the RBNZ meeting on Thursday, I suspect, but that could well be the catalyst to see the downside again come into focus as the market looks to see if the Governor Wheeler turns to the normal mantra of talking the Kiwi down."
NZ's Fonterra decided to cut the 2014/15 forecast farmgate milk price to NZD 4.70/Kg from NZD 5.30/Kg early Wednesday in New Zealand, a negative input for the Kiwi, providing some relief for those short NZD/USD. As Jim Langlands, Founder at FXCharts, notes: "Fonterra also noted that milk supply remains greater than demand and that there is still considerable volatility in global dairy markets which added to the downside pressure."
Technically, Jim notes: "On the topside, the 100 HMA (0.7715) will act as resistance ahead of the session high, which in turn lies just ahead of the 200 HMA at 0.7775. The downside will see bids all the way down to the low of 0.7608. If we break 0.7600, which I am a bit doubtful of doing today, the Kiwi could then begin to accelerate towards the next major Fibo support at 0.7430 (61.8%). This seems unlikely before the RBNZ meeting on Thursday, I suspect, but that could well be the catalyst to see the downside again come into focus as the market looks to see if the Governor Wheeler turns to the normal mantra of talking the Kiwi down."