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6 Aug 2013
NZD/USD rallies strongly as NZ dairy auction looms
FXstreet.com (New York) - The NZD/USD foreign exchange rate has moved to session highs Tuesday morning, recovering steadfastly amidst the recent drama unfolding in the New Zealand economy.
NZD/USD event risk
All eyes will be on the NZ dairy auction, with results due on Tuesday at approximately 14:00-15:00 GMT - Tomorrow's dairy auction will be watched very closely by economists as it will give the first real indication of how the contamination crisis has and will affect the country's economy. The New Zealand dollar is likely to suffer a further sell-off if dairy demand drops sharply.
NZD/USD strategic bias
According to the Technical Analyst Team at ICN.com, The NZD/USD started the week sharply lower, with a strong bearish gap, confirming the bearish view. Further downside is seen this week, following a potential minor upside pullback to fill the gap, which targets the 0.7700 support level again.”
Technically speaking, the NZD/USD is now trading at 0.7826, securing a marginal advance above it’s opening during Asian trading. Should the pair climb higher, resistances will hold the NZD/USD in check at 0.7826 (200-day SMA), onto 0.7861 (August 1 low), and 0.7914 (August 2 high). The pair remains fortified by supports at 0.7793 (55-day MA).
NZD/USD event risk
All eyes will be on the NZ dairy auction, with results due on Tuesday at approximately 14:00-15:00 GMT - Tomorrow's dairy auction will be watched very closely by economists as it will give the first real indication of how the contamination crisis has and will affect the country's economy. The New Zealand dollar is likely to suffer a further sell-off if dairy demand drops sharply.
NZD/USD strategic bias
According to the Technical Analyst Team at ICN.com, The NZD/USD started the week sharply lower, with a strong bearish gap, confirming the bearish view. Further downside is seen this week, following a potential minor upside pullback to fill the gap, which targets the 0.7700 support level again.”
Technically speaking, the NZD/USD is now trading at 0.7826, securing a marginal advance above it’s opening during Asian trading. Should the pair climb higher, resistances will hold the NZD/USD in check at 0.7826 (200-day SMA), onto 0.7861 (August 1 low), and 0.7914 (August 2 high). The pair remains fortified by supports at 0.7793 (55-day MA).