GDT price index preview: What to expect of NZD/USD?

By FXStreet FXStreet (Córdoba) – Global Dairy Trade (GDT) will release its dairy price index, which is released every two weeks and has gained relevance lately as approximately 7% of New Zealand GDP comes from milk exports. The index uses a weighted-average of the percentage changes in dairy prices sold at auction.

The latest reading on December 15th showed a 1.9% increase in the price index compared to it previous release two weeks before.

Whole-milk powder futures have fallen 5.8% since the last auction, which could see a fall in GDT index and subsequently weigh on the New Zealand dollar.

NZD/USD technical levels

Ahead of the auction, NZD/USD was trading at 0.6712, 0.56% below its opening price. As for technical levels, next supports are seen at 0.6668 (50-day SMA), 0.6593 (Dec 9 low) and 0.6580 (100-day SMA). On the flip side, if the index surprises to the upside, NZD/USD could attempt a recovery, with resistances lining up at 0.6762 (21-day SMA), 0.6806 (10-day SMA) and 0.6835 (200-day SMA).
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Source:: FX Street