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Kiwi is hammered down by Fonterra results


FXStreet (Moscow) - NZD/USD crashed to new lows (currently at 0.8519) on the back of Fonterra results

Milky blow

NZD/USD was nervous the whole morning, and not in vain as Fonterra announced revised farmer payout 2014 forecast to NZ$6/kg, which is worse than expected. NZ economy in general and kiwi in particular is very sensitive to dairy priced and dairy market conditions and today’s news adds gloom to overall economic picture of New Zealand. NZD/USD is trying to break below 0.8520 support level, once it is broken, the downside will extend to 0.8500.

What price levels and patterns have to be considered?

Spot is presently trading at 0.8517, and next resistance can be seen at 0.8529 (Yesterday's Low), 0.8531 (Daily Classic S1), 0.8546 (Daily Classic PP), 0.8547 (Daily Open) and 0.8548 (Monthly Low).

Support below can be found at 0.8517 (Daily Low), 0.8513 (Daily Classic S2), 0.8498 (Daily Classic S3), 0.8488 (Weekly Classic S1) and 0.8452 (Daily 200 SMA).

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