NZD/USD off lows after GDT auction

By FXStreet FXStreet (Córdoba) – The kiwi rose in the market after dairy prices surged at the latest auction. NZD/USD rose back above 0.6300 trimming losses.

NZD/USD limited by 0.6340

The pair bottomed at 0.6292, the lowest since Friday, but after the GlobalDairyTrade price index showed an increase of 16.5% bounced to the upside, rising 25 pips. Currently it trades at 0.6315, down 0.20% for the day.

As market waits for the Federal Reserve decision, NZD/USD is consolidating and moving round 0.6320. The pair dropped sharply last Thursday and then recovered modestly. The recovery from levels near multi-year lows has been capped below 0.6350.

Above 0.6350, the next level to what is 0.6370/75 and then the 0.6400 handle. The kiwi failed to consolidate above 0.6400 during the previous two weeks and then retreated. If it manages to do so, it could open the doors for further gains. The long term trend continues to favor the US dollar.
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Source:: FX Street