NZD/USD hits 6-weeks high boosted by a weak USD and rising dairy prices

By FXStreet FXStreet (Córdoba) – NZD/USD broke above previous highs located at 0.6331 and climbed to 0.6539, hitting the highest level since August 25.

GDT up, USD down

The GlobalDairyTrade Price Index rose 9.9% at the latest Fonterra auction, climbing of the fourth event in a row. The kiwi rose in the market after the auction, pushing NZD/USD toward weekly highs while AUD/NZD trimmed daily gains.

The decline of the US dollar across the board also boosted the NZD/USD. The pair now stands at 0.6536 and still holds a bullish tone. It if consolidates above 0.6535 the next residence could be located at 0.6560, 0.6600 and 0.6650 (Aug 12 high).

During the European session the pair found support again above 0.6475. It bottomed during the Asian session at 0.6477, then recovered and a few hours ago dropped gain toward the lows, before reversing sharply. The area around 0.6475 become a key short-term support.
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Source:: FX Street