7 Aug 2015
NZD/USD turns positive near 0.6550 on Fonterra’s new measures
FXStreet (Mumbai) - The NZD/USD pair trades almost unchanged in the mid-Asian, swiftly recovering from a dip to session lows following the Fonterra’s payout forecast cut and also the farm support plan announcement.
NZD/USD supported above 0.6500
Currently, the NZD/USD pair trades modestly flat at 0.6554, rising nearly 20 pips after the announcement. The NZD/USD pair is seen posting modest gains and attempts to extend its recovery as markets appear to have already priced-in the Fonterra news, thus the kiwi bidding up slightly post the news release.
Fonterra announced, "Farmgate milk price forecast has been reduced from $5.25 kgms to $3.85 per kgms. Co-operative has announced $4.25 - $4.35 forecast total available for payout for 2015/16. Has reduced its New Zealand milk volume forecast for 2015/16 season to 1,589 million kgms, 2 per cent lower than the previous season”
Moreover, the dairy giant also announced the new measures to support the dairy industry, a Co-operative Support Program of an additional 50 cents per shared-up kilogram of milk solids to support farmers this season.
However, the upside remains capped on the back of a broadly higher US dollar ahead of the key US NFP data due later in the US session.
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NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600levels and above which it could extend gains 0.6619 (Aug 4 High). To the downside immediate support might be located at 0.6502 (July 17 Low) below that at 0.6480 (2009 levels).
NZD/USD supported above 0.6500
Currently, the NZD/USD pair trades modestly flat at 0.6554, rising nearly 20 pips after the announcement. The NZD/USD pair is seen posting modest gains and attempts to extend its recovery as markets appear to have already priced-in the Fonterra news, thus the kiwi bidding up slightly post the news release.
Fonterra announced, "Farmgate milk price forecast has been reduced from $5.25 kgms to $3.85 per kgms. Co-operative has announced $4.25 - $4.35 forecast total available for payout for 2015/16. Has reduced its New Zealand milk volume forecast for 2015/16 season to 1,589 million kgms, 2 per cent lower than the previous season”
Moreover, the dairy giant also announced the new measures to support the dairy industry, a Co-operative Support Program of an additional 50 cents per shared-up kilogram of milk solids to support farmers this season.
However, the upside remains capped on the back of a broadly higher US dollar ahead of the key US NFP data due later in the US session.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600levels and above which it could extend gains 0.6619 (Aug 4 High). To the downside immediate support might be located at 0.6502 (July 17 Low) below that at 0.6480 (2009 levels).