NZD/USD: oscillates awaiting a fresh catalyst, bears in control
|Currently, NZD/USD is trading at 0.7235, down 0.00% on the day, having posted a daily high at 0.7244 and low at 0.7233.
Forex today: US retail sales take the dollar and yields higher
NZD/USD is licking its wounds at the bottom of the overnight range where the dollar was top of the pops and the antipodeans took the brunt of the shift in tone. NZD/USD dropped from the vicinity of 0.7280 and the GDT price index was also a disappointment for the bulls suffering in the wake of an excellent retail sales report from the US economy.
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
A resurgence in the dollar would come as a relief for the RBNZ. However, they recently explained that they still expect the bird to decline gradually over the next few years, so the recent rise in the currency is expected to suppress inflation over the next year or so but not over the medium term, explained analysts at Westpac, adding "still, there was some escalation of the RBNZ’s concerns in the language of the statement, which noted that a lower exchange rate is “needed” (as opposed to “would help”) to rebalance the outlook for growth."
NZD/USD levels
While the bears remain in control, 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. To the upside, 0.7290/00, 0.7330 and 0.7370 (9th Aug high) are the first resistance areas.
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