NZDUSD Plunges Sharply After GDT Auction News

FXOpen

The New Zealand Dollar (NZD) fell broadly against the US Dollar (USD) on Wednesday, dragging the price of NZDUSD to less than 0.7300, following the release of some key economic news. The technical bias remains bearish because of a Lower High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 0.7278. A support can be seen around 0.7235, the swing low of the latest major downside move ahead of 0.7200, the psychological number as well as another major horizontal support as demonstrated in the given below four-hour chart. A break and four-hour candle closing below the 0.7200 shall incite the renewed selling interest, validating a move towards the 0.7000 region in the long run.

NZDUSD Plunges Sharply After GDT Auction News

On the upside, the pair is expected to face a hurdle near 0.7291, the horizontal resistance ahead of 0.7334-0.7357 resistance area, which is a key horizontal resistance area. A break above 0.7357 is needed in order to trigger further bullish momentum, putting 0.7500 in sight for the long term.

GDT Auction

International milk prices rose in the overnight Global Dairy Trade auction, but the increase was less than expected. The GDT Price Index, which covers a variety of products and contract periods, climbed 1.7 percent with an average selling price of $2,975 per tonne, in the auction held on Tuesday. Whole milk powder, which makes up the bulk of the auction, eased 0.2 percent to $2,782 percent while skim milk powder rose 3.0 percent. Dairy futures contracts had pointed to a stronger rise, in particular in whole milk powder. Until recently, dairy has been the backbone of New Zealand’s economy, representing around 25 percent of exports. But dairy prices have dropped sharply from their record highs in 2013, due to China’s economic slowdown and global oversupply.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on short term rallies appears to be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside The US Dollar Is Weakening Following Inflation Data Dollar Adjusts After the Publication of Inflation Data in the US Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction GBP/USD Analysis: Pound Recovers After the Bank of England Decision

Latest articles

Shares

Coinbase (COIN) Stock Price Holds at Key Support Level

On Thursday, stock market traders were concerned about the sharp drop in Coinbase shares, listed on the Nasdaq, which fell by 9%. This was triggered by rumours that the Chicago-based CME Group is planning to launch cryptocurrency trading, posing a

What Is the Gold/Silver Ratio, and How Do Traders Use It?
Trader’s Tools

What Is the Gold/Silver Ratio, and How Do Traders Use It?

The gold/silver ratio, which measures the relative value of these two precious metals, is a vital tool for commodity traders. Understanding this relationship helps identify market trends and trading opportunities. This article explores how to calculate, analyse, and trade

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks

Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.