NZD/USD: targetting 100 DMA on a loss of 0.66 handle

By FXStreet FXStreet (Guatemala) – NZD/USD is currently on the offer with spot at 0.6640 at time of writing having made a fresh low of 0.6626 and a high of 0.6709.

NZD/USD penetrated the 50 DMA at 0.6663 yesterday with the 200 DMA resisting the November recovery. Fundamentals stay with a struggling commodities sector and the 2016 Chinese crisis starting us off for the year. Investors are looking for safe havens and the recovery in the bird is looking compromised already before the possibility of the Fed hiking gradually this year and the RBNZ on the back foot.

Yesterday, the GDT price index showed a drop of 1.6% in dairy since the last auction and the Yuan was devalued sharply sparking off more downside and heightened risk aversion. Today, we had the prelude to the Nonfarm payrolls data in the ADP report that impressed with 275K vs 192k exp and 1211k prior. The IMS were mixed and now we await the FOMC minutes.

NZD/USD levels

Technically, NZD/USD targets the 100 DMA at 0.6578 as it chips away at the 50 DMA at 0.6663. A break to the downside brings in 0.6428 and the Nov low as last defense for a full correction …read more

Source:: FX Street