Little reaction in the NZDUSD The auction results from New Zealand’s global dairy trade are showing a decline of -3.5% in prices.
- The average selling price came in that NZ$3,105 Per tonne
- the index fell 1% at the previous sale
- a total of 35,072 tonnes was sold at the latest auction, falling 1.7% from the previous auction
- the auctions are held twice a month with the next one scheduled for November 21
The auction results can affect the New Zealand dollar as a dairy sector generates more than 7% Of the nation’s gross domestic product. The New Zealand milk cooperative, which is owned by 10,500 farmers, controls nearly a third of the world dairy trade.
Despite the decline in prices, the NZDUSD is little changed at 0.6912 although it is lower on the day and trades near the lows for the day.
Looking at the chart below, the pair is trading around the 100 hour MA at 0.69117. The 200 hour MA is at 0.6885 and would be a target on more weakness today. Yesterday, the price dipped below that MA line on one hourly bar, but could not sustain momentum. That started a short covering rally higher. That rally stalled ahead of the 38.2% at 0.69635 level.