- NZD/USD is currently trading at 0.6828, traded as low as 0.6827 and down from 0.6856 the high in Asia.
- The greenback firmed in Tokyo and the antipodes took the brunt of it.
Despite this slide, the bird remains supported amidst broad USD weakness, in general, leading into the FOMC where markets are looking for a dovish outcome.
The news of China retreating on trade is not helpful though but the new in North America was conflicting, and the reports that Treasury Secretary Mnuchin plans to travel to China next week for more trade talks and the WSJ reporting that both sides are aiming to close a deal by late April should have satisfied markets in Asia.
GDT Price index:
Meanwhile, dairy commodity prices continue to rise with a 1.9% lift in the GDT Price Index overnight. “Whole milk powder gained a respectable 4.0%, albeit slightly less than the market anticipated. Movements of other commodities were mixed with butter and cheese gaining ground, while prices dropped in line with expectations for anhydrous milk fat and skim milk powder. Last night’s result marks the eighth consecutive lift in the index since December. Softening global supply, and more recently Fonterra’s downwards revision to its milk production forecast have been supportive,” analysts at ANZ bank NZ reported.
NZD/USD levels
- Support 0.6780
- Resistance 0.6875
The bird has taken out S1 and bears can look to S2 at 0.6823 below the 21-D SMA at 0.6831. S3 is located at 0.6806. On the flipside, R2 is located above the double top highs of 0.6870 at 0.6885.
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