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NZD/USD drops after weak GDT auction results

FXStreet (Mumbai) - The NZD/USD pair fell into losses after the Global Dairy Trade (GDT) auction ended with a drop in the milk prices contrary to the expectation that prices would consolidate.

Eyes hourly 200-MA

The spot took out the support of hourly 50-MA and is now heading towards the hourly 200-MA located at 0.6752 levels. Milk powder prices dropped 4.6% and the main dairy prices dropped 3.1%. Prices had ticked higher in last three occasions and markets were expecting them to consolidate today.

The bearish overhang of the weak GDT auction could keep the Kiwi on the back foot till NY closing. Meanwhile, traders would keep an eye on Yellen’s comments due later today.

NZD/USD Technical Levels

The immediate support is located at 0.6752 (hourly 200-MA), under which the spot could drop to 0.67 handle. On the other side, resistance is seen at 0.6804 (hourly 50-MA), above which the pair could target 0.6846 (daily high).

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