FX.co ★ Global macro overview for 02/07/2015 NZD Edging Lower

Global macro overview for 02/07/2015 - NZD Edging Lower

After last night's disappointing diary product auction results, the New Zealand dollar is trading at its lowest levels since May 2010. The NZD/USD pair was trading -0.64% lower at the level of $0.6695 after diary product prices fell 5.9%. Another factor that added fuel to the fire was the divergent rate policy between New Zealand and the US, as the New Zealand Reserve Bank had cut its interest rate in June to support the slowing economic growth rate. Amid the ongoing situation, we expect further downward moving towards the support level.

From the technical point of view, traders can see the immediate support at the level of 0.6562 on the monthly chart (May 2010 low). It is quite close to the next possible support at the 61%Fibo at the level of 0.6403.