NZD/USD: offered on Fonterra’s bearish outcome

By FXStreet NZD/USD is currently offered from the 200 sma at 0.6766 to a low of 0.6728.

NZD/USD sold off as Fonterra suggested the NZD is high, affecting milk prices and outlook and forecasted the 2016-17 milk prices at 4.25/kg vs the expected 4.50-4.80, bearish for the Kiwi.

Meanwhile, the schedule is quiet in Asia, but stock markets could be the catalyst to support a rebound in the Kiwi on a continuation of a better risk environment so the Tokyo, Chinese market open and subsequent performance is one to watch along with the US and Japanese yield spread correlation driving values in the greenback. In the US session Wall Street rallied and should lead to a positive start in Asia potentially offering support to the bird.

NZD/USD levels

NZD/USD: high conviction trade, fade 0.6840 – Westpac

The recovery to the 200 sma and highs of 0.6772 was a short-lived score. The price has come crashing down below the 0.6742 level and the 50 sma on the 1hr sticks. The 100 dma at 0.6718 is a key supporting level. On the upside, the ascending channel line support is 0.6847 and the 0.7000 level is the key psychological target.
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Source:: FX Street