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18 Mar 2015
NZD/USD sidelined above 0.7300
FXStreet (Mumbai) - NZD/USD continues its side trend from the previous session and remains almost unchanged in the mid-Asian session, struggling to hold 0.73 barrier, as markets await the FOMC statement and New Zealand’s GDP data for fresh cues.
NZD/USD capped by 5-DMA
Currently, the NZD/USD pair trades flat at 0.7308, having previously posted day’s lows at 0.7301 and day’s high at 0.7319. NZD/USD continues to consolidate on the 0.73 handle following a massive sell-off in the previous session after Fonterra's GDT Price Index dipped 8.8%, with an average selling price of NZD3,136 per tonne, in the auction held on Tuesday. The result was the first decline since mid-December, and the biggest fall since mid-July last year. Dairy products account for more than a quarter of New Zealand's export earnings.
Meanwhile, the kiwi remained unmoved by mixed NZ Current account data showing the gap in trade narrowed to NZD3.19 billion in the Q4 2014 from NZD5.01 in the Q3, coming in largely on par with forecasts. However, the annual deficit grew to NZD7.8 billion, or 3.3% of GDP, from 2.6% in Q3. NZD/USD is likely to remain supported in a quiet trading ahead of FOMC statement later in the day for further dollar moves.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7327 (5-DMA) levels and above which it could extend gains to 0.7462 (March 10 High) levels. To the downside immediate support might be located at 0.7300 levels below that at 0.7269 levels
NZD/USD capped by 5-DMA
Currently, the NZD/USD pair trades flat at 0.7308, having previously posted day’s lows at 0.7301 and day’s high at 0.7319. NZD/USD continues to consolidate on the 0.73 handle following a massive sell-off in the previous session after Fonterra's GDT Price Index dipped 8.8%, with an average selling price of NZD3,136 per tonne, in the auction held on Tuesday. The result was the first decline since mid-December, and the biggest fall since mid-July last year. Dairy products account for more than a quarter of New Zealand's export earnings.
Meanwhile, the kiwi remained unmoved by mixed NZ Current account data showing the gap in trade narrowed to NZD3.19 billion in the Q4 2014 from NZD5.01 in the Q3, coming in largely on par with forecasts. However, the annual deficit grew to NZD7.8 billion, or 3.3% of GDP, from 2.6% in Q3. NZD/USD is likely to remain supported in a quiet trading ahead of FOMC statement later in the day for further dollar moves.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7327 (5-DMA) levels and above which it could extend gains to 0.7462 (March 10 High) levels. To the downside immediate support might be located at 0.7300 levels below that at 0.7269 levels