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10 Dec 2014
NZD/USD gains capped at 5-DMA after Fonterra cuts forecast payout
FXStreet (Mumbai) - The Kiwi pared gains earlier today to trade around the 5-DMA level located at 0.7710 after the Fonterra Cooperative Group cut its forecast payout to farmers.
The NZD/USD traded 0.43% higher at 0.7711 at the time of writing; down from the high of 0.7728 levels hit earlier today. Kiwi came under pressure after Fonterra reduced its forecast payout by 60 cents per kilogram of milk solids. The decision to cut forecast payout comes ahead of the Reserve Bank of New Zealand (RBNZ) rate decision tomorrow. Governor Wheeler is expected to hold overnight cash rate (OCR) unchanged at 3.5%. The dovish expectations from the RBNZ also weighed on the New Zealand dollar.
NZD/USD Technical Levels
The pair has an immediate resistance at 0.7729, above which gains could be extended to 0.7769 (10-DMA). Meanwhile, support is seen at 0.7697 and 0.7668 levels.
The NZD/USD traded 0.43% higher at 0.7711 at the time of writing; down from the high of 0.7728 levels hit earlier today. Kiwi came under pressure after Fonterra reduced its forecast payout by 60 cents per kilogram of milk solids. The decision to cut forecast payout comes ahead of the Reserve Bank of New Zealand (RBNZ) rate decision tomorrow. Governor Wheeler is expected to hold overnight cash rate (OCR) unchanged at 3.5%. The dovish expectations from the RBNZ also weighed on the New Zealand dollar.
NZD/USD Technical Levels
The pair has an immediate resistance at 0.7729, above which gains could be extended to 0.7769 (10-DMA). Meanwhile, support is seen at 0.7697 and 0.7668 levels.