13 Aug 2015
NZD/USD pares gains near 0.6625 on Fonterra news
FXStreet (Mumbai) - The New Zealand dollar erased most early gains and trades muted versus its US counterpart in mid-Asia, now pushing NZD/USD towards 0.66 handle, as the Kiwi was hit by the latest news that S & P has placed Fonterra – NZ’s dairy giant on credit watch negative.
NZD/USD drops from 0.6642
Currently, the NZD/USD pair trades modestly flat at 0.6620, recovering from a brief dip below 0.66 handle. The New Zealand dollar came under fresh selling pressure and halted its recovery from session lows after news crossed the wires that S&P rating agency places Fonterra rating on credit watch negative, noting high debt levels and financial troubles in the dairy giant as key reasons for the move.
On Wednesday, the NZD/USD pair rebounded sharply as the greenback was heavily offered after markets speculated that PBOC Yuan fix may push back Fed rate hike bets to early next year.
Meanwhile, markets now await key US economic release later today for further momentum on the pair while NZ retail sales data due tomorrow will also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (Aug 12 High) levels and above which it could extend gains 0.6683 (July 31 High) levels. To the downside immediate support might be located at 0.6590 (Today’s Low) below that at 0.6515 (Aug 11 Low).
NZD/USD drops from 0.6642
Currently, the NZD/USD pair trades modestly flat at 0.6620, recovering from a brief dip below 0.66 handle. The New Zealand dollar came under fresh selling pressure and halted its recovery from session lows after news crossed the wires that S&P rating agency places Fonterra rating on credit watch negative, noting high debt levels and financial troubles in the dairy giant as key reasons for the move.
On Wednesday, the NZD/USD pair rebounded sharply as the greenback was heavily offered after markets speculated that PBOC Yuan fix may push back Fed rate hike bets to early next year.
Meanwhile, markets now await key US economic release later today for further momentum on the pair while NZ retail sales data due tomorrow will also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (Aug 12 High) levels and above which it could extend gains 0.6683 (July 31 High) levels. To the downside immediate support might be located at 0.6590 (Today’s Low) below that at 0.6515 (Aug 11 Low).