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NZD/USD recovers to 0.7440

FXStreet (Mumbai) - The NZD/USD pair, which fell on disappointing Fonterra global diary trade auction, managed to recover back to 0.7440 on the disappointing US manufacturing PMI data.

Gains capped by fall in GDP price index

The pair recovered to trade at 0.7440 from the low of 0.7710 on a weaker-than-expected US ISM manufacturing figure, however, the gains could be capped by a 10.8% fall in the global dairy trade price index at the latest Fonterra auction.

The weakness in the dairy prices could weigh on the Kiwi, thereby limiting gains arising out of a weak ADP employment report and PMI manufacturing report.

NZD/USD Technical Levels

The immediate resistance is seen at 0.7465 (50-DMA), above which gains could be extended to 0.7489. On the flip side, support is seen at 0.7410, under which losses could be extended to 0.7371.

USD/JPY on track to climb towards 125 by year-end – Scotiabank

The recent data out of Japan suggests that the BoJ might be pressurized to ease further, notes Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, while predicting USD/JPY to eventually move higher towards 125 levels by 2015-end.
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