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 published every two weeks. The index uses a weighted-average of the percentage changes in dairy prices sold at auction and it has gained relevance lately, as approximately 7% of New Zealand GDP comes from milk exports.

The latest reading on January 5th showed a 1.6% decline in the price index compared to it previous release.

Ahead of the announcement, whole-milk powder futures have fallen 3.5% over the last two weeks, which could potentially see a fall in GDT index as well and therefore weigh on the New Zealand dollar.

NZD/USD technical levels

Ahead of the auction, NZD/USD was trading at 0.6482, 0.53% above its opening price, recovering some ground in tandem with better risk sentiment.

As for technical levels, next resistances are seen at 0.6528 (10-day SMA), 0.6579 (100-day SMA) and 0.6677 (Jan 8 high). On the other hand, immediate supports could be found at 0.6403/00 (Jan 18 low/psychological level), 0.6380 (Jan 15 low) and 0.6338 (Sep 30 2015 low).
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Source:: FX Street