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2 Mar 2015
NZD/USD testing lows at 0.7523
FXStreet (Mumbai) - The New Zealand dollar opened the week on a softer note against the US counterpart, knocking off NZD/USD to two-day lows on a weaker than expected NZ export prices numbers.
NZD/USD trades below 50-DMA
Currently, the NZD/USD pair trades lower by -0.57% near session lows at 0.7523 levels having previously posted day’s high at 0.7556 levels. NZD/USD started with a negative bias this Asian morning largely on the back of a broadly stronger US dollar underpinned by upbeat US GDP numbers. Moreover, the downslide in the Kiwi was further accelerated after New Zealand’s Terms of Trade data showed another sharp decline in export prices last quarter.
The merchandise Terms of Trade fell 1.9% in the December quarter, after sliding a revised 4.5% in the third quarter, against expectations for the trade index to fall 2.9% in the final quarter. Export prices were down 1.8% in Q4 2014, driven almost entirely by a 15% slump in dairy prices.
Meanwhile, the NZD/USD pair is likely to remain pressured ahead of a slew of US economic releases and Reserve Bank of Australia’s rate decision tomorrow which may provide further cues on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7563 levels and above which it could extend gains to 0.7600 levels. To the downside immediate support might be located at 0.7500 levels below that at 0.7489 (20-DMA) levels.
NZD/USD trades below 50-DMA
Currently, the NZD/USD pair trades lower by -0.57% near session lows at 0.7523 levels having previously posted day’s high at 0.7556 levels. NZD/USD started with a negative bias this Asian morning largely on the back of a broadly stronger US dollar underpinned by upbeat US GDP numbers. Moreover, the downslide in the Kiwi was further accelerated after New Zealand’s Terms of Trade data showed another sharp decline in export prices last quarter.
The merchandise Terms of Trade fell 1.9% in the December quarter, after sliding a revised 4.5% in the third quarter, against expectations for the trade index to fall 2.9% in the final quarter. Export prices were down 1.8% in Q4 2014, driven almost entirely by a 15% slump in dairy prices.
Meanwhile, the NZD/USD pair is likely to remain pressured ahead of a slew of US economic releases and Reserve Bank of Australia’s rate decision tomorrow which may provide further cues on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7563 levels and above which it could extend gains to 0.7600 levels. To the downside immediate support might be located at 0.7500 levels below that at 0.7489 (20-DMA) levels.