GDT Price Index Preview: What to Expect of NZD/USD?
Global Dairy Trade (GDT) will release its dairy price index, which is
published every two weeks and uses a weighted-average of the percentage
changes in dairy prices sold at auction. The index has gained relevance
lately, as approximately 7% of New Zealand GDP comes from milk exports.
The
latest reading on March 15th showed a 2.9% decline in the price index
compared to it previous release. Whole Milk Powder (WMP) futures are
pricing a near 9.0% fall, which could hit the Kiwi for another leg
lower.
NZD/USD technical levels
Ahead of
the auction, NZD/USD was trading around 0.6776, 0.81% below its opening
price as the risk-off mood continues to weigh commodity-currencies. A
negative GDT reading could potentially pressure further the New Zealand
dollar, while a less expected positive reading could help the NZD to
trim losses.
As for technical levels, next supports are seen at
0.6715 (Mar 29 low), 0.6687 (50-day SMA) and 0.6658 (100-day SMA). On
the flip side, immediate resistances line up at 0.6834 (Apr 5 high),
0.6936 (Apr 1 high) and 0.6964 (Mar 30 high) ahead of 0.7000
(psychological level).
(Market News Provided by FXstreet)
