1 Mar 2016
NZD/USD drops below 0.66 despite upbeat GDT auction
The latest Global Dairy Trade (GDT) auction ended with uptick in price index, despite which the NZD/USD pair surrendered gains to trade just below 0.66 handle.
GDT price index rises 1.4%
The GDT price index rose 1.4% compared to 2.8% drop seen in the previous auction. However, the Kiwi, which had strengthened ahead of the event in anticipation of upbeat auction, witnessed profit taking. The spot turned lower from the high of 0.6640 to trade around 0.6595 levels.
The investors now await the US ISM manufacturing PMI release, which could show the activity contracted again in February.
NZD/USD Technical Levels
The immediate resistance is seen at 0.6619 (580-DMA), above which the spot could make another attempt to chew through offers around 0.6644 (200-DMA). On the other hand, a breakdown of immediate support at 0.6565 (previous day’s low) could send the pair down to 0.65 handle.
GDT price index rises 1.4%
The GDT price index rose 1.4% compared to 2.8% drop seen in the previous auction. However, the Kiwi, which had strengthened ahead of the event in anticipation of upbeat auction, witnessed profit taking. The spot turned lower from the high of 0.6640 to trade around 0.6595 levels.
The investors now await the US ISM manufacturing PMI release, which could show the activity contracted again in February.
NZD/USD Technical Levels
The immediate resistance is seen at 0.6619 (580-DMA), above which the spot could make another attempt to chew through offers around 0.6644 (200-DMA). On the other hand, a breakdown of immediate support at 0.6565 (previous day’s low) could send the pair down to 0.65 handle.