NZD/USD offered once again near 0.7365 on Fonterra CEO’s comments

The central banks’ events dominated the price-action in NZD/USD so far this session, as markets continue to weigh the dovish tone out of RBNZ against the backdrop of a cautious Fed.

NZD/USD testing 20-DMA resistance-turned support

Currently, the NZD/USD pair trades modestly flat at 0.7338, having stalled post RBNZ recovery at 0.7369, daily highs. The bears are back in control and dragged the Kiwi back towards 0.73 handle, as thin market conditions exaggerated the negative sentiment around the NZD, especially after the RBNZ talked down the exchange rate level and outrightly said that further easing will be required in the months ahead.

The latest move lower in the NZD/USD pair is mostly on the back of comments from Fonterra’s CEO, as he noted that strong NZD is not in Fonterra’s favour. Amid a lack of relevant fundamental triggers in the second half this week, markets will continue to digest the latest policy verdict from the Fed and RBNZ.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7369 (daily high), above which it could extend gains to at 0.7400 (round number). To the downside immediate support might be located at 0.7255 (50-DMA) and from there to at 0.7209 (daily S3).