NZD/USD drops further on stronger USD and a decline in dairy prices

By FXStreet FXStreet (Córdoba) – NZD/USD extended the decline and reached a fresh 6-day low at 0.6734. Currently is trading at 0.6740/45, down 0.65% for the day.

The kiwi dropped sharply during the American session and made a strong reversal across the board. NZD/USD reached 0.6840, the highest level since the beginning of the week and then lost strength. Today following Fonterra’s auction where the GlobalDairyTrade price index showed a decline of more than 3% it accelerated the decline. Also the US Dollar recovered ground in the market and pushed the pair even lower.

NZD/USD continues to retreat after hitting last week at 0.6898 the highest level in three months. Despite falling today for the third day in a row, still trades more than 300 pips above the level it had at the beginning of the month.

AUD/NZD soars

The decline of the NZD in the market pushed AUD/NZD sharply to the upside. The pair is having the best performance in a month. After testing a key support, near 1.0620/30 (Oct 15, 16 & 20 lows) it jumped to 1.0760, the highest level since last Thursday.
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Source:: FX Street