NZD/USD: old news is good news for NZD/USD – UOB

By FXStreet FXStreet (Guatemala) – Albeit slightly older news from this week, some key background the the NZD/USD’s remains prominent in the recent advance onto the 0.66 handle started with how analysts at UOB Group explained that Fonterra’s auction brought another buoyant release for dairy prices with the GDT dairy price index up 9.9% and whole milk powder up 12.9%.

For the latest price action in the NZD/USD, see here. NZD/USD should we expect a sell-off now?

Key Quotes:

“Compared with a year earlier, overall prices are now up 9.8% y/y, but remain down 43% from two years earlier. The increase in prices continues to come on the back of sharply reduced volumes offered through the platform, with the quantity sold at the latest auction down 36%. It remains to be seen what prices the withheld product will achieve.”

“NZD spiked to as high as 0.6556 shortly after the release, extending the gains seen for the past week as the greenback faced the odds of a delayed Fed rate hike.”

For the latest price action in the NZD/USD, see here. NZD/USD should we expect a sell-off now?
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Source:: FX Street