NZD/USD oscillates with the lows post steep drop

FXStreet (Guatemala) - NZD/USD is trading at 0.8426, down -0.47% on the day, having posted a daily high at 0.8475 and low at 0.8423.

The kiwi has continued to underperform and especially during the London afternoon, with kiwi selling accelerating following the dairy auction results, where whole milk powder prices fell a startling -11.5% to be -45% since February, as noted by Sean Callow, analyst at Westpac Banking Corporation ABN. “Our NZ economists are reassessing their current NZD6.00/kg payout forecast for FY14/15 but note that they continue to expect higher prices later this year”. Then we had the NZ jobs data that wasn’t meeting high expectations and left us with a lower participation rate that the market focused upon, sending the bird even lower in an stronger dollar environment.

NZD/USD Levels

Spot is presently trading at 0.8427, and next resistance can be seen at 0.8435 (Daily Classic S1) and 0.8457 (Daily 200 SMA), Next support to the downside can be found at 0.8423 (Daily Low), 0.8403 (Daily Classic S2), 0.8360 (Weekly Classic S3) and 0.8354 (Daily Classic S3).