The Kiwi dollar fell against the greenback after the New Zealand GDP comes below expectations.
New Zealand’s second quarter GDP of 0.4% qoq, 0.6% is expected, the former value of 0.2%.
New Zealand’s second quarter GDP growth of 2.4%, expected 2.5%, revised up from 2.6% the previous value of 2.7%.
Last week, RBNZ cut the official cash rate 2.75%, the former value of 3.00%. RBNZ: It may be further easing to a certain extent, the New Zealand dollar fell further is appropriate.
The dairy prices start picking up in the recent 3 actions. On September 15 Global Dairy Trade (GDT) price index rose 16.5%, the highest for the last five years the largest single increase.
Traders now shift focus to Fed interest rates decision.
Deutsche Bank: Fed policymakers might indicate prudent approach is “doing nothing.”
Goldman Sachs CEO Lloyd Blankfein: financial markets swooning, because no one recognized the Fed’s future approach, US economic data does not support the FOMC plus interest, FOMC policymakers lack of consensus, may not take action in September.
The cross approached the 20Dsma before the mega event. As of now, the cross made a double top at 0.6378, 20dsma seems at 0.6385.
On the down side, September 07th low was 0.6243 and on RBNZ day low made at 0.6266 which is a higher low. The other low was recorded on 0.6071 August 24th. The panic likely to trigger below 0.6240 towards 0.6200 and 0.6150. The bulls must close above 20Dsma to retain the strength and 100.00FE in the four-hour chart seems at 0.6380.
Resistance: 0.6380 0.6425 0.6470
Support: 0.6330, 0.6290 and 0.6240
The cross has been forming an ascending triangle height of 170 pips. A daily close above 20Dsma 0.6380 the bulls aim at 0.6460 and 0.6510 immediately.
Intraday selling open below 0.6310, accelerates below 0.6290