NZD/USD – Selling interest stalled near 0.70 handle

Selling interest in the NZD/USD pair ran out of steam at the session low of 0.7013, making way for a minor correction to 0.7033 levels.

Eyes GDT auction

Kiwi traders await Fonterra GlobalDairyTrade (GDT) auction. Dairy market experts expect softer prices in the short term as seasonal volumes increase before any recovery can commence in the medium term.

On Monday, New Zealand CPI missed estimates and triggered speculation of a rate cut in August. Earlier today, news broke out that RBNZ announced further property lending restriction, which strengthened speculation the bank would cut rates this month.

Consequently, the pair was heavily offered below 0.71 handle. The spot is down for the fifth consecutive session.

NZD/USD Technical Levels

A break above immediate hurdle at 0.7054 (Apr 19 high) would open doors for a rise to 0.7079 (July 6 low). A violation there could yield 0.71 handle. On the lower side, a breakdown of psychological support at 0.70 could see the pair drift lower to 0.6963 (June 15 low). A violation there could yield a test of 0.69 handle.