NZD/USD peeps above 0.72 after Fonterra boosts payout forecast

The NZD / USD rose to an Intraday high of 0.7211 after reports hit the wires that Fonterra has boosted the forecast payout to farmers by 50 cents to $6.40 a kilo of milk solids.

The pair was last seen just below the 0.72 handle.

The upward revision of the forecast payout was expected after gains this week in global dairy auction prices. The cooperative has been steadily boosting its forecast payout in response to rising dairy prices since September.

The focus now is on the China trade data. Later in the day, the ECB rate decision could influence the broader market sentiment.

NZD/USD Technical Levels

A break above the daily high of 0.7211 would expose 0.7265 (Oct 20 high). A violation there could yield a test of 0.73 handle. On the other hand, a breakdown of support at 0.7182 (session low) would open doors for a sell-off to 0.7152 (50-DMA) and 0.7119 (10-DMA).