NZD/USD keeps the positive around 0.7760

FXstreet.com (Edinburgh) -The kiwi dollar maintains the positive ground despite the grim news from China, with the NZD/USD gyrating around 0.7760/55 region on Monday.

NZD/USD hurt by China ban

After dropping to the area of 0.7730 overnight, the NZD managed to gather traction and recover the 0.7800 handle although losing ground afterwards. The Chinese ban on NZ’s dairy products is behind today’s drop and it looks to keep on weighting on the Kiwi as the situation would apparently extend for some time. “It is unclear at this stage for how long this ban will remain in force, but in theory the consequences could be quite severe for the New Zealand dollar unless it is lifted within a week or two”, according to strategists at the Swiss lender UBS.

NZD/USD levels to watch

The pair is now up 0.20% at 0.7770 and a breakout of 0.7818 (high Aug.5) would aim for 0.7913 (MA21d). On the downside, the next support lines up at 0.7670 (low Aug.5) followed by 0.7620 (low Jun.8 2012) and then 0.7605 (high Jun.5 2012).