Summary:

• The latest GDT auction has shown a 1.6% decline in the main index
• The New Zealand dollar is lower across the board today
• AUDNZD sits at a potentially key level 

The latest results of the fortnightly Global Dairy Trade (GDT) auction have shown a 1.6% in the main index which marks the first significant contraction in this reading since March. The past four readings have oscillated around 0 but today’s reading is a clear negative development for the index and may weigh on the New Zealand dollar. 

 

 The GDT price index has experienced its first significant decline in several months this afternoon

The New Zealand dollar is trading lower across the board today as the currency has been hit with a wave of selling. From the heatmap on xStation you can see that the biggest riser is the Euro, but there are also notable gains in the GBP and USD. 

 The New Zealand dollar (NZD) is depreciating against all of its peers today

One pair involving the NZD that currently trades at an interesting level is the AUDNZD. The market has been moving quite nicely of late and despite threatening to break lower earlier today has held on to support around the 1.06 handle. The falling trendline from the 2017 highs above 1.10 was tested and respected in recent weeks and these are now two key lines to keep an eye on going forward. 

 The AUDNZD is currently at an interesting level having respected support at 1.06 yesterday