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NZD/USD braced at this weeks highs ahead of dairy auction

FXStreet (Guatemala) - NZD/USD is trading at 0.8180, up 0.01% on the day, having posted a daily high at 0.8183 and low at 0.8175.

NZD/USD is trading at the highs of the week so far in anticipation of the all important and key Dairy auction coming up 12GMT or there about. 0.8180 is acting as key resistance for the time being, protecting the 0.82 psychological barrier. In respect of the auction, it will be the last chance for prices to bounce off the yearly lows before Fonterra’s release it’s next payout forecast announcement (due 24 September). Analysts at BNZ explained that they are not convinced a bounce will occur at this particular event. “And so – even with a lot that can happen between now and the end of the 2014/15 season – Fonterra is currently under pressure to revise lower its milk price forecast, from the $6 it tabbed down to on 29 July (and, more surprisingly, reaffirmed on 27 August)”.

NZD/USD other near-term variables

Beside this event, the week ahead may well offer us some further volatility as markets are getting back into form as volatility is increasing. The Fed meeting on Wednesday could well be of significance as investors will be keeping a keen ear on any changes of language in the accompanying statement in respect of the Fed’s forward guidance that has so far pledged to keep rates low “for a considerable time”. With it being evident from recent minutes that a number of members to the board are not in union around this subject and current language, the USD could come out bid on the back of yields rising on any shifts in the language.

NZD/USD hourly levels

Spot is presently trading at 0.8176, and next resistance can be seen at 0.8183 (Daily Classic R1), 0.8191 (Hourly 100 SMA) and 0.8207 (Weekly Classic PP). 0.8163 (Hourly 20 EMA) and 0.8148 (Monthly Low).

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