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NZD/USD depressed at 6-month low, Fonterra's announcement eyed

FXStreet (Bali) - NZD/USD is consolidating near a 6-month low printed during Tuesday at 0.8311, before running a tepid recovery limited by 0..8350 offers.

While not having any noticeable impact on current price, New Zealand just published a weak reading on its Food Price Index (MoM), which dipped from previous 1.4% to -0.7% in July. However, all the focus will be on a 'Global Strategy’ announcement by New Zealand's Fonterra at 1.55 GMT.

According to ANZ: "It could be their regular quarterly update which is required by DIRA regulation. Last update was end of May, so time frame fits. However not sure there will be anything new with the recent cut to $6 kg/ms only occurring two GDT auctions ago. Don't think it would be great look (politics for board) to be making another reduction so soon and the last release noting that the stabilization and turn around in pricing remained uncertain."

Technically, Jim Langlands, Founder at FXCharts, notes: "Further losses look quite possible, and a break of 0.8300 would hint at a run towards 0.8275(50% Fib of 0.7670-0.8839) and then 0.8242 (February 20 low,). On the topside, we need to regain 0.8350 to restore some stability. If that can be achieved, then further sellers will be seen at 0.8370 (100 HMA)..."

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