For Kiwi, Focus Is on Dairy Auctions Today
New Zealand Dollar, riding on weaker Dollar and recent improved sentiments towards commodities broken above a key resistance around 0.69 area. However that break has so far been short lived as Dollar has snapped back its loss broad based.
So, bulls will have to wait for the next boost for New Zealand Dollar or next weakness for Dollar. While no big risk event for Dollar isn’t scheduled until tomorrow’s FOMC. However, Kiwi on the other hand has dairy auction scheduled for tonight, which could either provide some support and help for a base for next move up or provide further reasons to bears to push Kiwi down.
Today’s reports from ANZ showed,
- Over commodity index for New Zealand dropped -1.3% in March, with dairy contributing majority (-4.5%) to the drop. Cheese and butter saw declines of -12.4% and -7.7% respectively, contributing to the woe at a time when global demand is weak and Kiwi has grown stronger. Further rise is likely. So while prices have fallen only 1.3% in USD terms, they are down 2.9% in NZD terms.
In last five of the six auctions prices have declined and rose only once and by just 1.4%.
Kiwi is currently trading at 0.677 against Dollar, next key support lies at 0.668 area.
The material has been provided by InstaForex Company - www.instaforex.com