Disappointment at the latest GDT price auction weighs on the kiwi. NZD/USD dips into daily cloud.
The latest dairy auction prices in New Zealand have shown a -0.4% decline to an average price of $3,339 per tonne.
On the other side, USD remains bid on rising rate hike expectations this year on the back of strong retail sales data and Fed's Dudley's optimism.
NZD/USD is trading a narrow range on the day, is holding above the 0.72 handle.
Technical indicators are bearish, RSI is well below 50 and biased lower. MACD also supports trend lower.
We see scope for further downside on break below 0.72 handle. Test of 200-DMA at 0.7124 then likely.
Support levels - 0.72 (38.2% Fib retrace of 0.88228 to 0.61968 fall), 0.7167 (weekly 20-SMA), 0.7150 (50-DMA)
Resistance levels - 0.7270 (5-DMA), 0.73, 0.7320 (50-DMA)
Watch out for break below 0.72 for further downside. Target 0.7170/ 0.7150/ 0.7125
The latest dairy auction prices in New Zealand have shown a -0.4% decline to an average price of $3,339 per tonne.
On the other side, USD remains bid on rising rate hike expectations this year on the back of strong retail sales data and Fed's Dudley's optimism.
NZD/USD is trading a narrow range on the day, is holding above the 0.72 handle.
Technical indicators are bearish, RSI is well below 50 and biased lower. MACD also supports trend lower.
We see scope for further downside on break below 0.72 handle. Test of 200-DMA at 0.7124 then likely.
Support levels - 0.72 (38.2% Fib retrace of 0.88228 to 0.61968 fall), 0.7167 (weekly 20-SMA), 0.7150 (50-DMA)
Resistance levels - 0.7270 (5-DMA), 0.73, 0.7320 (50-DMA)
Watch out for break below 0.72 for further downside. Target 0.7170/ 0.7150/ 0.7125