NZDUSD – Testing testing pivotal corrective resistance
Fonterra’s auction brought another buoyant release for dairy prices with the GDT dairy price index up 9.9% and whole milk powder up 12.9%. Compared with a year earlier, overall prices are now up 9.8% y/y, but remain down 43% from two years earlier. The increase in prices continues to come on the back of sharply reduced volumes offered through the platform, with the quantity sold at the latest auction down 36%. It remains to be seen what prices the withheld product will achieve. NZD spiked to as high as 0.6556 shortly after the release, extending the gains seen for the past week as the greenback faced the odds of a delayed Fed rate hike.
- Expecting decent offers on the first retest of .6700 resistance level monitor intraday price action for a reversal pattern to play short leaning against .6815 targeting a retest of the base initially at .6400. If no support found at the retest of the corrective base (highlighted int he chart) stay short for a test of psychological .6000