18 Aug 2015
NZD/USD ahead of PPI, after GDT
FXStreet (Córdoba) - The kiwi was among the top performs on Tuesday favored by rising dairy prices. The GlobalDairyIndex rose more than 10% after today’s auction signaling that a bottom has been reached in prices according to analysts. In a few hours the New Zealand Producer Price Index of the second quarter will be released.
Expectations are for a decline of 0.5% in the PPI input index and a decline of 0.2% in the output index. A higher-than-expected reading could continue to boost the kiwi in the market, while a low number could remove strength.
NZD/USD tested on Tuesday the 0.6600 area but it was unable to break it, becoming the zone, a key short-term resistance. On the opposite direction, the dynamic support to consider is an uptrend line in the hourly chart, originated at August lows, that currently stands around 0.6560/60.
Also in the US
Despite the reports from New Zealand, Wednesday will be an important day for the US with the release of the Consumer Price Index for July and the minutes of the latest FOMC meeting, where analysts will search for signals about when the Federal Reserve could start rising rates.
Expectations are for a decline of 0.5% in the PPI input index and a decline of 0.2% in the output index. A higher-than-expected reading could continue to boost the kiwi in the market, while a low number could remove strength.
NZD/USD tested on Tuesday the 0.6600 area but it was unable to break it, becoming the zone, a key short-term resistance. On the opposite direction, the dynamic support to consider is an uptrend line in the hourly chart, originated at August lows, that currently stands around 0.6560/60.
Also in the US
Despite the reports from New Zealand, Wednesday will be an important day for the US with the release of the Consumer Price Index for July and the minutes of the latest FOMC meeting, where analysts will search for signals about when the Federal Reserve could start rising rates.