NZD/USD (current price: 0.7277)
The New Zealand Dollar has been relatively strong in recent weeks despite the rate cut by both the local and the Australian central banks, as the regional economies continue to show resilience in the face of the Asian slowdown. Global Dairy Prices continued to rise according to the GDT Price Index, as it jumped by more than 12% in the past two weeks. The pair is still consolidating below the 0.735 resistance, with the rising 200-day MA still found well below the current rate at 0.685.
Our assessment: NZD/USD rebounded off the 0.72 level again on Wednesday, and it is now trading right at 0.73, possibly getting ready for a break-out on the upside, after a month of consolidation.
