NZD/USD tests 200-DMA ahead of GDT auction

By FXStreet Broad based USD strength pushed NZD/USD to 200-DMA at 0.6622 ahead of Global Dairy Trade (GDT) auction.

Weak US data ignored

The pair stays under pressure despite dismal US data release as investors consider a possibility of Fed signaling rate hike this year.

The immediate focus now is on the GDT auction. Prices at last auction rose 1.4% and thus had put an end to four consecutive weak auctions. Another rise in GDT price index today would bode well for the Kiwi, but scope for a sharp rise is limited, given RBNZ’s dovish forward guidance and caution ahead of tomorrow’s FOMC rate decision.

NZD/USD Technical Levels

A break below 0.6622 (200-DMA) would open doors for a drop to 0.66 handle (also 50-DMA). On the other hand, a break above 0.6650 (rising trend line hurdle) could see the spot re-test daily high of 0.6684.
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Source:: FX Street