NZD/USD: Upbeat global dairy data helps guard the downside around 0.6790 support
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NZD/USD: Upbeat global dairy data helps guard the downside around 0.6790 support

  • NZD/USD trades near 0.6800 during early Wednesday.
  • The pair manage to extend earlier pullback as GDT data crossed prior.
  • While 0.6790 and 0.6765 may limit immediate downside, 0.6840 and 0.6890 are likely nearby resistances to watch.

NZD/USD is taking the bids near 0.6800 mark during early Asian morning on Wednesday. The pair stretched its recovery from the 0.6790 immediate support after global dairy data (GDT) price index grew more than prior. The quote dropped late-Tuesday on strong US statistics but reversed from the low near 0.6770 by the day-end as comments from Fed policymakers were less positive to the sentiment.

Fortnightly data from the GDT showed that price index grew 3.3% from the February 19 growth of 0.9%. Dairy products are crucial to the New Zealand economy and any positive signals from the same can please Kiwi traders.

The NZD/USD pair dropped late-Tuesday as the US ISM Non-Manufacturing PMI (Feb) rose more than 57.3 forecast to 59.7 while New Home Sales also grew past 0.600M market consensus to 0.621M during the month of December. The US Dollar (USD) registered across the board strength on welcome data but couldn’t go long as Fed policymakers were on wires.

Soon past the release, Minneapolis Federal Reserve President Neel Kashkari and Boston Fed President Eric Rosengren were on wires and negatively affected the greenback. Rosengren conveyed risks from macro events like Brexit, trade talks whereas Kashkari said that the U.S. economy was not at full employment.

While dovish comments from the Fed policymakers and upbeat GDT data helped NZD/USD guard its downside again around 0.6790, developments concerning the US-China trade deal are likely nearby catalysts for the pair traders to watch.

NZD/USD Technical Analysis

The pair needs to provide a sustained downturn under 0.6790 trend-line connecting lows since early January, also decline beneath 100-day simple moving average (SMA) level of 0.6765, in order to visit 0.6720 and 0.6700 supports.

On the upside, 0.6840 and 0.6870 can entertain short-term buyers ahead of challenging them with near-term descending resistance-line at 0.6890.

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