NZD/JPY bears looking for an extension while trading below critical support


  • NZD/JPY bears in control on the broader picture, but bulls holding the fort for now. 
  • Central bank themes could be the next catalyst for the commodity complex. 

NZD/JPY has been attracting bears overnight, seeking a break below 68 the figure, but bulls have stepped in again. The Bird has been under tremendous pressure since April yet there seems no let-up in the downside bias and now that the cross had closed below the 2016 lows and the March 2012 highs, the downside still remains compelling. 

There is not much going on out there for the NZD nor with respect to the Yen. However, overnight, GlobalDairyTrade auction results were stronger than expected, with the GDT Price Index falling just 0.2% (against expectations of a 1% fall). "Milk fats and skim milk prices declined, but particularly positive for our dairy producers was the lift in whole milk powder prices (+2.1%) to an average price of US$3100/t. This bodes well for a $7+ milk price for the 2019-20 season. Our forecast is currently $7.10/kgMS while Fonterra’s forecast is $6.25 - $7.25," analysts at ANZ Bank noted. 

Central Banks come back to the fore

Meanwhile, the market's focus for the rest of the week will be with the Federal Reserve, sparking a theme for central banks in general. The macro picture is likely to reemerge as a driver so long as geopolitical headlines remain subdued - Canadia CPI and EZ PMIs will play their part in the central bank theme as well, but the Federal Open Market Committee minutes and Jackson Hole will be specifically enlightening and could be the next driver to make or break the (Dollar) commodity complex in upcoming sessions for which the Kiwi trades as a proxy, albeit not quite as close as the Aussie.

NZD/JPY levels

NZD/JPY

Overview
Today last price 68.19
Today Daily Change 0.02
Today Daily Change % 0.03
Today daily open 68.17
 
Trends
Daily SMA20 69.73
Daily SMA50 71
Daily SMA100 72.09
Daily SMA200 73.86
Levels
Previous Daily High 68.51
Previous Daily Low 68.03
Previous Weekly High 69.16
Previous Weekly Low 67.55
Previous Monthly High 73.26
Previous Monthly Low 71.26
Daily Fibonacci 38.2% 68.21
Daily Fibonacci 61.8% 68.33
Daily Pivot Point S1 67.96
Daily Pivot Point S2 67.75
Daily Pivot Point S3 67.48
Daily Pivot Point R1 68.45
Daily Pivot Point R2 68.72
Daily Pivot Point R3 68.93

 

 

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