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29 Jul 2014
NZD/USD: Fonterra announcement eyed
FXStreet (Bali) - NZD/USD is trading at 0.8553, up 0.06% on the day, having posted a daily high at 0.8558 and low at 0.8541.
The FXStreet OB/OS Index is reflecting neutral hourly Conditions, while the FXStreet Trend Index is strongly bullish. Currently RSI is at 66.81, up from the last hourly print at 51.03, with ADX at 31.46, up from its previous close at 13.03. Daily RSI sits at 33.18, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.8554, down from the last close at 0.8643 and declining. Over the past 20 days, the exponential average closing price is 0.8693, and trending lower.
In terms of fundamentals, Peter Fell, Analyst at FXBeat, notes: "Fonterra is the main topic of discussion this morning, they are due to announce their milk pay-out to the farmers (announcement to be made at 04:00 GMT), and expectations are for a drop towards NZ$ 6.0/6.25 per kilo, down from NZ$ 7.0 per kilo previously estimated. A drop towards 6.20 would take NZ$ 4 billion out of the dairy sector, a big dent to the NZ economy, but given the widespread expectations of softer milk pay-outs, I would think most of this bad news has already been priced in and further downside forays are limited."
The FXStreet OB/OS Index is reflecting neutral hourly Conditions, while the FXStreet Trend Index is strongly bullish. Currently RSI is at 66.81, up from the last hourly print at 51.03, with ADX at 31.46, up from its previous close at 13.03. Daily RSI sits at 33.18, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.8554, down from the last close at 0.8643 and declining. Over the past 20 days, the exponential average closing price is 0.8693, and trending lower.
In terms of fundamentals, Peter Fell, Analyst at FXBeat, notes: "Fonterra is the main topic of discussion this morning, they are due to announce their milk pay-out to the farmers (announcement to be made at 04:00 GMT), and expectations are for a drop towards NZ$ 6.0/6.25 per kilo, down from NZ$ 7.0 per kilo previously estimated. A drop towards 6.20 would take NZ$ 4 billion out of the dairy sector, a big dent to the NZ economy, but given the widespread expectations of softer milk pay-outs, I would think most of this bad news has already been priced in and further downside forays are limited."