Muted reaction in NZD/USD following GDT auction

By FXStreet FXStreet (Mumbai) – The NZD/USD pair inched a couple of pips higher to 0.6783 after the GlobalDairyTrade (GDT) Price Index rose 1.9% at Fontera’s latest auction.

Stuck at key Fib

The pair failed to sustain above 0.6787 (76.4% of 0.6897-0.6428) and failed to rise back above the same after Fontera’s auction. Milk Powder Prices rose 1.8% to $2304/mt, but the uptick was less than expected.

Consequently, the bid tone on the NZD failed to gather ace. Meanwhile, the rise in the treasury yields following the upbeat US November CPI release increased demand for the US dollar.

NZD/USD Technical Levels

At 0.6777, the immediate resistance is seen at 0.6787 (76.4% of 0.6897-0.6428), above which the gains could be extended to 0.6826 (daily high). A break higher would expose 0.6878 (200-DMA). On the other hand, support is seen at 0.6714 (23.6% of 0.6236-0.6897), under which the losses could be extended to 0.67 handle.
For more information, read our latest forex news. …read more

Source:: FX Street