- NZD/USD pulls back from one-week-high as doubts over dairy questions the Kiwi fundamentals.
- Absence of any details on the US-China trade talks also weighs on the antipodeans amid a lack of major clues.
With the recent doubts on New Zealand’s main earning source, the NZD/USD steps back from August 28 top to 0.6360 amid initial Asian session on Thursday.
The Kiwi pair reacted to the Bloomberg’s news piece that spots the Australia and New Zealand Banking Group’s (ANZ) analysis while citing a risk that the largest dairy producer at home, Fonterra, will be unable to pay full milk prices. The report anticipates Fonterra’s 2019-20 milk price around New Zealand Dollar (NZD) 7 per kilograms.
Earlier during the week, Global Dairy Trade (GDT) Price Index from New Zealand dropped well below -0.2% prior to -0.4% during the second half of the August month.
Also weighing on the prices could be the absence of any details on the much-anticipated trade negotiations between the US and China. It should also be noted that China’s readiness to take control of protests in Hong Kong, which the US isn’t favoring, might weigh on the trade discussions between the global leaders.
With no major domestic data/events scheduled for publishing, investors will keep an eye of trade/political news for fresh impulse while trade balance numbers from the largest customer Australia could offer intermediate trade opportunities ahead of the US session begin.
Technical Analysis
Not only early-August low near 0.6378 but the 21-day exponential moving average surrounding 0.6400 also exerts immediate downside pressure on the prices towards 0.6320 and the monthly bottom surrounding 0.6270.
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