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NZD/USD: Sellers take back control, capped by 20-day EMA

FXStreet (Bali) - NZD/USD failed yet again at the 20-day EMA on Tuesday, same pattern seen last Oct 9, with price turning lower to end the NY session at 0.7835, near the day lows.

The next focal point for NZD traders will be the GlobalDairyTrade auction, due at the early NZ hours of Thursday. Craig Ebert, Senior Economist in BNZ's Wellington dealing room, notes, "the resumed price plunge (-7.3%) at the previous auction has beaten us into a stronger state of agnosticism regarding near-term direction; if there is no material bounce at this week’s auction we will crystalize the downside risk we’ve been emphasizing, and move our dairy milk price forecast for this season down to $5.00 (perhaps even lower?), from the $5.30 mark we went with at the time of Fonterra’s announcement on 24 September."

Technically, Jim Langlands, Founder at FXCharts, notes: "The downside will see bids at 0.7800 and then at 0.7780. Below there would hint at a return to the 0.7707 trend low, and although this appears unlikely in the short term, I think it is the direction that we should be looking for in the medium term and another poor result from the dairy auction today could help it on its way."

Australia: GDP forecasts revised down modestly - NAB

Alan Oster, Group Chief Economist at National Australia Bank, shares the bank's view on the Austalian economy, noting that GDP forecasts were revised down modestly: 2014/15 2.8% (was 2.9%) and 2015/16 3.2% (was 3.4%).
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