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16 Jul 2015
NZD/USD bounces-off 0.6499
FXStreet (Mumbai) - The New Zealand dollar was battered by the American dollar in European session, knocking-off NZD/USD to fresh six year lows just below 0.65 handle. The Kiwi was relentlessly sold-off as downbeat NZ inflation figures coupled with tumbling dairy prices added to the speculation that the RBNZ will cut rates next week.
NZD/USD weighed by NZ CPI, RBNZ rate-cut bets
Currently, the NZD/USD pair trades lower by -0.97% at 0.6525, rebounding slightly from fresh six year lows reached at 0.6499. The Kiwi slumped to its lowest level since August 2009 on prospects that the Reserve Bank of New Zealand (RBNZ) will most likely cut interest rates at its meeting next week.
Adding to further RBNZ rate-cut bets, Fonterra's Global Dairy Trade (GDT) auction which took place on Wednesday, revealed that global dairy prices fell a further 10.7%.
Meanwhile, NZD/USD is expected to be influenced by upcoming US macro releases while Yellen’s testimony may also provide further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6571 (Today’s High) levels and above which it could extend gains to 0.6600 To the downside immediate support might be located at 0.6499 (Today’s Low) below that at 0.6460 levels.
NZD/USD weighed by NZ CPI, RBNZ rate-cut bets
Currently, the NZD/USD pair trades lower by -0.97% at 0.6525, rebounding slightly from fresh six year lows reached at 0.6499. The Kiwi slumped to its lowest level since August 2009 on prospects that the Reserve Bank of New Zealand (RBNZ) will most likely cut interest rates at its meeting next week.
Adding to further RBNZ rate-cut bets, Fonterra's Global Dairy Trade (GDT) auction which took place on Wednesday, revealed that global dairy prices fell a further 10.7%.
Meanwhile, NZD/USD is expected to be influenced by upcoming US macro releases while Yellen’s testimony may also provide further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6571 (Today’s High) levels and above which it could extend gains to 0.6600 To the downside immediate support might be located at 0.6499 (Today’s Low) below that at 0.6460 levels.