NZD/USD downside bias below 100 DMA

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6572 with a high of 0.6597 and a low of 0.6562.

NZD/USD is consolidated around the 100 DMA still in a phase of consolidation as we head towards the end of year’s business with the RBNZ expected to cut interest rates while the Fed have been sighted as starting to return to a normalisation of their interest rate policy for the first time in the last decade. The greenback is supported under such divergence of the two Central Banks while the bird is exposed to a commodity sector that is dying a slow death in the Chinese slowdown.

NZD/USD: New Zealand data and commodity prices

Imre Speizer, Strategist at Westpac explained that the NZ event calendar next week remains of a second-tier nature, although it will shed more light on the commodity and housing outlooks. “The GDT dairy auction on Tue will be closely watched because whole milk powder futures are currently predicting a rebound of 10%+ magnitude, probably in response to increasing focus on the prospect of drought this summer. Economic data includes building permits and business confidence (Mon), Q3 terms of trade and QV house prices (Tue, and worth watching as further …read more

Source:: FX Street