2 Jul 2015
NZD/USD extends slide to 0.6670
FXStreet (Mumbai) - Falling dairy prices coupled with divergent monetary policy stance drives the NZD/USD pair to its lowest levels since June 2010. The kiwi witnessed steep losses also on strengthening US dollar ahead of the crucial US payrolls data due out later today.
NZD/USD extends declines from 0.6708
Currently, the NZD/USD pair trades -0.93% lower at fresh five year lows of 0.6670, heading towards 0.66 barrier. NZD/USD was relentlessly offered as weak NZ fundamentals and stronger greenback negatively impacted the sentiment around the New Zealand dollar.
The NZD came under further selling pressure as the US dollar rose against most of its peers ahead of the incoming data from the US economy, mainly the US labor market which continue to show signs of strength in the US economic recovery.
NZD/USD extended losses also after the results of the Global Diary Trade auction showed dairy products prices fell 5.9% in the auction from July 1st.
RBNZ Governor Graeme Wheeler said on June 11 when lowering the cash rate, "the weaker prospects for dairy prices and the recent rises in petrol prices will slow income and demand growth and increase the risk that the return of inflation to the mid-point would be delayed."
In the day ahead, markets now look forward to a batch of US economic data including the crucial Non-farm payrolls which may set further tone for US dollar moves.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6700 levels and above which it could extend gains 0.6750 levels. To the downside immediate support might be located at 0.6650 below that at 0.6600 levels.
NZD/USD extends declines from 0.6708
Currently, the NZD/USD pair trades -0.93% lower at fresh five year lows of 0.6670, heading towards 0.66 barrier. NZD/USD was relentlessly offered as weak NZ fundamentals and stronger greenback negatively impacted the sentiment around the New Zealand dollar.
The NZD came under further selling pressure as the US dollar rose against most of its peers ahead of the incoming data from the US economy, mainly the US labor market which continue to show signs of strength in the US economic recovery.
NZD/USD extended losses also after the results of the Global Diary Trade auction showed dairy products prices fell 5.9% in the auction from July 1st.
RBNZ Governor Graeme Wheeler said on June 11 when lowering the cash rate, "the weaker prospects for dairy prices and the recent rises in petrol prices will slow income and demand growth and increase the risk that the return of inflation to the mid-point would be delayed."
In the day ahead, markets now look forward to a batch of US economic data including the crucial Non-farm payrolls which may set further tone for US dollar moves.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6700 levels and above which it could extend gains 0.6750 levels. To the downside immediate support might be located at 0.6650 below that at 0.6600 levels.