NZD/USD recovered to $0.8160
NZD/USD jumped to $0.8160 after a sideways trade in the $0.8050/8130 range. The diary giant Fonterra delivered an opening forecast Farmgate Milk Price of NZ$7.00 per kilogram of milk solids for the 2013-2014 seasons. This announcement supported the kiwi dollar as it exceeded the market expectations.
However, the fundamental picture is not so positive, given the growing pessimism about the Australian and Chinese economies. There is still no confirmation of a bullish reversal, so we’ll definitely stand away from buying below the $0.8200 resistance. However, note that the pair is supported by the bullish weekly Ichimoku. A break above this level would be a positive signal for the buyers. If kiwi continues the decline, we’ll be ready to sell on a break below $0.8000 with an initial target of $0.7910.
Chart. Daily NZD/USD