NZD/USD: bears testing bull's commitments at 200-W SMA

• NZD/USD: bears well in control and seeking 0.6880.
• NZD/USD: dollar through key technical resistance in DXY, commodity FX hurting.

NZD/USD has been stabilising the downtrend to below the 0.70 handle while otherwise, the dollar has been through the roof and commodity FX has been suffering. Currently, NZD/USD is trading at 0.7006, up 0.03% on the day, having posted a daily high at 0.7011 and low at 0.7004.

NZD/USD dropped below the 0.7035/40 comfort zone when the dollar spiked yesterday with a rally that continued throughout European trade and into the NY session where 92.50 tops were put in place. NZD/USD sank toward 0.7000 late in the day.

"The USD (on a Dollar Index basis) pushed above its 200 day moving average overnight, briefly sending the NZD below 70 cents. The NZD has fallen a long way and corporate hedging demand is apparent. This will likely slow its descent from here. Nevertheless, we still see further moves south as likely," analysts at ANZ explained.

GDT price index

"The GDT Price Index was down 1.1%, with volume of product up from the last auction. Whole milk powder prices were down 1.5%, while skim milk powder, cheddar and butter prices were up," the analysts at ANZ explained.

NZD/USD levels

The 200-W SMA is being tested here at 0.6980. Despite last week's closing bull hammer on the daily sticks, technically, there is still a bearish bias now that a new low has been set accompanied with the RSIs biased to the downside as well. Support is at 0.6880 and resistance is at 0.7050 and 0.7180 on the wide.