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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis
Financial Market News
Forex Market Insights

AUD/USD Consolidates Gains While NZD/USD Dips

AUD/USD is consolidating gains near the 0.6420 zone. NZD/USD is trimming gains and struggling to stay above the 0.5945 pivot zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

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.