NZD/USD upside limited – UOB

By FXStreet FXStreet (Guatemala) – Analysts at UOB Group noted that NZD was one of the strongest performers on Tuesday, after dairy prices rose for the first time in almost two months and as the greenback struggled to gain any traction.

Key Quotes:

“The first increase in dairy prices since early October was seen in Fonterra’s fortnightly GDT auction. The GDT index was up 3.6%, whilst whole milk powder prices rose 5.3%.

Similar to AUD/USD, the anticipated NZD strength exceeded expectation with an overnight high of 0.6690. While further NZD strength will not be surprising in coming days, the current rally appears to be over-extended and further sustained up-move is not expected for today.”
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Source:: FX Street