NZD/USD: making a foundation on the 0.73 handle, traders await tomorrow's FOMC

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7312, up 0.66% on the day, having posted a daily high at 0.7319 and low at 0.7256.

New Zealand GDT Price Index rose from previous 0.3% to 0.9%

NZD/USD popped a handful of pips higher in the New York morning session on the back of a slight improvement in the latest auction data from Fonterra. The New Zealand GlobalDairyTrade price index arrived at +0.9% vs +0.3% prior. (Whole milk powder prices averaged at $3122/MT while Milk powder was +0.6%).

NZD/USD was struggling to maintain the bid, albeit within a very tight range just above 0.73 the figure and 0.7294 as the 23.6% Fib of 0.7132/0.7344 rally. However, the data gave the Kiwi the extra foundation needed to attract demand and has likely given it a base on the 0.73 handle, in the very near term at least and ahead of 0.7344, Monday's top and NZ current account data due later at 2245GMT in the Asian shift; There are no other data releases scheduled of any real significance ahead of the FOMC showdown tomorrow and NZ GDP later that day.

In other news:

NZD/USD levels

To the upside, a break of 0.7320, then 0.7334/37 recent highs and lastly 0.7370 (9th Aug high), the momentum would solidify a bullish trend back towards 0.7522 and the YTD highs. To the downside, a break of 0.7294, as the 23.6% Fib of 0.7132/0.7344 rally and a subsequent break of o/n support at 0.7280, and then 0.7220 would expose 0.7195 as a recent low. 0.7127 is the June 6th low and 0.7100 is a key psychological level.

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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