NZD/USD: settled into the 0.69 handle ahead of FOMC minutes

Currently, NZD/USD is trading at 0.6952, up 0.50% on the day, having posted a daily high at 0.6958 and low at 0.6890.

NZD/USD remains around the mid-point of the 0.69 handle while the dollar gave back some ground across the board after a series of bids throughout the festive seasons and gaining traction at the start of this week on the back of higher prospects for Q4 data after the ISM manufacturing surprise. The bird is bid, despite the yesterday's GDT price index results where the dairy auction saw all prices down 3.9% on average. Whole milk powder was down 7.7% and the result was worse than predicted by futures markets which had priced a small decline given the higher product volumes on offer.

We now await the FOMC minutes:

US: December FOMC minutes have the potential to read relatively hawkish - TDS

"With monetary policy divergence likely to be a key driver of dollar movement in the early part of this year, the FOMC minutes from the meeting in December to be released this evening may prove important," explained analysts at Bank of Tokyo Mitsubishi.

NZD/USD levels

Current price is 0.6952, with resistance ahead at 0.6956 (Weekly High), 0.6958 (Daily High), 0.6967 (Daily Classic R1), 0.6976 (Yesterday's High) and 0.6976 (Daily 20 SMA). Next support to the downside can be found at 0.6941 (Hourly 100 SMA), 0.6936 (Hourly 20 EMA), 0.6934 (Weekly Classic PP), 0.6930 (YTD High) and 0.6926 (Daily Classic PP).