NZD/USD drifting higher awaiting next catalyst, USD to extend gains?

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7289, up 0.03% on the day, having posted a daily high at 0.7293 and low at 0.7284.

NZD/USD is drifting higher in a slow paced start to Asia that is unlikely to provide much action given the absence of events today. However, the GDT dairy auction tonight is priced by futures for around a 4% rise in whole milk powder prices as analysts at Westpac explained and suggested that the 0.7250 area is vulnerable to a downside break if the US dollar extends last night’s gains.

Forex today: dollar benefits from less risk-off

NZD/USD 1-3 month:

Longer term, the analysts argue that should the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.69 by year end.

NZD/USD levels

0.7290/00, 0.7330 and 0.7370 (9th Aug high) are the first resistance areas. On the wide, 0.7420/25 ahead of the key 0.7440 and 0.7480 thereafter come as the next resistance areas. 0.7520/25 double top highs are ahead of the 21st July high at 0.7557. In a continuation, 0.7744 were the April 2015 highs ahead of the opening highs for that year at 0.7889. Supports are 0.7305, 0.7250 and the 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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