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17 Mar 2015
Kiwi declines as dairy prices fall for first time in 6 weeks
FXStreet (Mumbai) - The NZD/USD hit a session low of 0.7322 after the Fonterra global dairy trade (GDT) price index registered a fall of 8.8% at the latest auction concluded today. This was the first fall in dairy prices in six weeks.
NZD/USD: Falls below 100-MA on hourly chart
The pair fell below the hourly 100-MA located at 0.7348 after the disappointing GDT auction. Moreover, the hourly 100-MA had acted as a strong support on Friday. The NZD/USD is likely to extend losses further as the weak GDP auction results come ahead of the FOMC meeting. The USD could be bought as we move closer to the FOMC meeting as markets widely expect the Fed to drop the word “patient” from its forward guidance.
NZD/USD Technical Levels
The immediate support is seen at 0.7311, under which losses could be extended to 0.7190. On the flip side, a rise above 0.7348 (100-MA) could see the pair re-test 0.7400 levels.
NZD/USD: Falls below 100-MA on hourly chart
The pair fell below the hourly 100-MA located at 0.7348 after the disappointing GDT auction. Moreover, the hourly 100-MA had acted as a strong support on Friday. The NZD/USD is likely to extend losses further as the weak GDP auction results come ahead of the FOMC meeting. The USD could be bought as we move closer to the FOMC meeting as markets widely expect the Fed to drop the word “patient” from its forward guidance.
NZD/USD Technical Levels
The immediate support is seen at 0.7311, under which losses could be extended to 0.7190. On the flip side, a rise above 0.7348 (100-MA) could see the pair re-test 0.7400 levels.