Wednesday, November 18, 2015

NZD/USD off 6-week lows, near 0.6470

FXStreet (Mumbai) - The NZD bulls breathe a sigh of relief in the mid-Asian trades, after upbeat Chinese home prices data provide the much-need respite to the NZD/USD pair.

NZD/USD trades below daily pivot at 0.6474

Currently, the NZD/USD pair trades modestly flat at 0.6470, extending its recovery mode from six-week lows reached at 0.6453 in the previous session. The Kiwi received fresh impetus from the rise in China’s new home prices, which eased concerns somewhat over the country’s economic slowdown. China is New Zealand’s top trading partner.

However, the prices remain largely subdued as markets continue to weigh the latest Fonterra’s dairy auction results. While Westpac’s dairy price forecasts cut also negatively impacts the sentiment around the Kiwi. GDT price index showed a further 7.9% drop to $2,345 in average dairy prices, following the previous decline of 7.4% on November 3.

Moreover, the overnight slump in commodities especially copper, gold and oil continue to take a toll on the resource-linked NZD. Later in the day, markets await the US data and the FOMC minutes, following upbeat US inflation report published on Tuesday.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6492/0.6500 (Nov 17 High/ round number), above which it could extend gains to 0.6533 (1h 200-SMA) levels. To the downside immediate support might be located at 0.6453 (Nov 17 Low) below that 0.6430 (Oct 5 Low).
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