NZD/USD in a recovery of 0.7280 sell-off ahead of key FOMC minutes
|Currently, NZD/USD is trading at 0.7261, up 0.36% on the day, having posted a daily high at 0.7276 and low at 0.7224.
NZD/USD is in a recovery of yesterday's 0.7280 sell-off after the dollar bounced on the strong data and the commodity bloc took a hit.
Another weight was yesterday's GDT price index that showed that the latest dairy auction prices in New Zealand have shown a -0.4% decline to an average price of $3,339 per tonne.
- Whole milk powder price index falls 0.6%
- Whole milk price averages $3143/metric tonne
However, weaker than expected US data in housing starts and building permits that dropped significantly have enabled the antipodeans to rise ahead of the FOMC minutes today.
FOMC minutes in the limelight – Danske Bank
"We have played down the likely significance of the FOMC minutes from last month's meeting," explained analysts at BBH, adding, "The market does not expect a September hike. Therefore, a debate about the significance of the weakness in inflation is unlikely to change that. We note that the June minutes said that most participants understood the decline in price pressures to be due to transitory factors. Also, we see place emphasis on Dudley's recent comments. We suspect he reflected the views of the Fed's leadership more broadly."
NZD/USD levels
To the upside, 0.7290/00, 0.7330 and 0.7370 (9th Aug high) are the first resistance areas. To the downside, 0.7205, the 06 June 22/21 lows and 0.7186 June 15 low along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.
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