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NZD/USD supported at 0.7450

FXStreet (Mumbai) - The New Zealand accelerated losses and dived deeper in red against the American dollar in a data-dry European session, with NZD/USD heavily sold-off below 0.75 handle. The Kiwi extends declines from the previous session after Fonterra cut its whole milk powder forecasts while the latest news that M4.7 earthquake struck in New Zealand also keeps the local currency pressured.

NZD/USD recovers from fresh session lows

Currently, the NZD/USD pair trades lower by -0.51% at 0.7462, heading towards fresh session lows reached at 0.7451. NZD/USD extends losses after news hit the wires that a magnitude 4.6-earthquake has struck 5km southeast from Seddon, at the northern tip of the South Island with effects felt in Wellington. Moreover, a stronger US dollar across the board also exacerbated the pain in the New Zealand dollar.

Earlier in the Asian session, NZD/USD slipped following the announcement by New Zealand's biggest dairy company Fonterra that it expects to see smaller quantities of dairy products being put up for sale at its fortnightly Global Dairy Trade (GDT) auction over the coming year. Dairy product is New Zealand’s top exporting product.
Meanwhile, markets now await US industrial production and consumer sentiment data due later in the US session for further momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7500 levels and above which it could extend gains to 0.7563 (May 14 High) levels. To the downside immediate support might be located at 0.7450 levels below that at 0.7423 levels.

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