NZD/USD: downside prevails below 55 DMA

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6460 with a high of 0.6498 and a low of 0.6452.

NZD/USD remains under pressure and again, dairy weighs on the bird with the latest Fonterra GlobalDairyTrade (GDT) auction resulting in a 7.9% drop in prices which was a third consecutive decline in prices. The greenback remains well bid and the RBNZ could be required to once again cut interest rates in a bid to spur the economy despite the risk of creating a housing bubble. The FOMC is fast approaching on December and markets are looking for a rate hike which should put the bird into balance as a positive for the RBNZ.

NZD/USD levels

0.6489 (Fib. 61.8%) and 0.6500 levels were taken out and the price is directly offered below here while some margin below the 55 DMA at 0.6525 now. The September lows are compelling. The 200 DMA at 0.6962 needs to be broken to alleviate immediate downside pressures.
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Source:: FX Street