NZD/USD: stabilized at 0.6920 after volatility in US

Currently, NZD/USD is trading at 0.6918, up 0.02% on the day, having posted a daily high at 0.6923 and low at 0.6906.

NZD/USD is in a neutral position trading within a 0.6860-0.6980 range post a volatile day across the board with oil all over the board, the dollar breaking 14-year highs with stronger US construction spending that rose by 0.9% in Nov (0.5% expected), with upward revisions in non-residential and public construction, along with the ISM manufacturing rising from 53.2 to 54.7 (53.8 expected) and to a two-year high. Subsequently, the Atlanta Fed upgraded its model prediction for Q4 GDP from 2.5% to 2.9%

Oil making major moves as full markets return for 2017 action

For the Kiwi, the GDT dairy auction, something which Wayne highlighted at a key correlation in the FX market in the video below, and this saw all prices down 3.9% on average, with whole milk powder down 7.7%, as noted by analysts at Westpac, adding, "The result was worse than predicted by futures markets which had priced a small decline given the higher product volumes on offer."

NZD/USD 1-3 month:  

Analysts at Westpac offered an outlook for the medium term as follows: "Lower to at least 0.6800. The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend."

NZD/USD levels

Spot is presently trading at 0.6918, and next resistance can be seen at 0.6919 (Hourly 200 SMA), 0.6923 (Daily High), 0.6927 (Hourly 20 EMA), 0.6930 (YTD High) and 0.6930 (YTD Low). Next support to the downside can be found at 0.6917 (Daily Open), 0.6909 (Daily Classic S1), 0.6906 (Daily Low), 0.6889 (Daily Classic S2) and 0.6887 (Weekly Classic S1). 

What are the outlooks for oil, Kiwi corroaltions, yen and euro?