NZD/USD Fails to Benefit from Higher Dairy Prices
NZD/USD is rising for the second day in a row and during the American session, it has been consolidating gains. The pair peaked earlier at 0.6830, the highest level since May 17 and then pulled back modestly. It was trading at 0.6804/08, up 0.65% for the day.
The latest daily auction showed a gain in prices of 3.4%. It was the second monthly increase in a row. The New Zealand dollar rose marginally in the market after the auction and is still the top performer among commodity currencies.
NZD/USD holds a bullish tone
Today the pair broke above an important resistance located around 0.6775 and also climbed on top of the 21-day moving average for the first time in a month improving the short-term technical outlook for the kiwi. To the upside, the next relevant resistance could be seen at 0.6845/50 (May 10, 11 & 17 highs). On the opposite direction, a decline back below 0.6770 would remove the current bullish tone.