NZD/USD Resumes the Downtrend, Despite Positive GDT Dairy Price Auction
Skerdian Meta • 1 min read
NZD/USD made a bullish move by the middle of August, approaching the 0.65 level before turning bearish and it has been trading on a bearish trend since then. The price fell below moving averages which were acting as support before, while now they have turned into resistance at the top, particularly the 50 SMA (yellow) on the H4 chart.
NZD/USD H4 Chart – The 50 SMA Keeping the Price Bearish
This pair is approaching 0.60 fast
Yesterday we saw a continuation of the bearish move, after the rejection below the 50 SMA and the upside-down pin candlestick, which is a bearish signal. So, the decline continued and this pair approached the big round level at 0.60. That’s after the New Zealand global dairy trade auction came in positive, after several negative ones.
One of the reasons for this was the bullish momentum in the USD, especially after the US ISM services report, which was quite positive, raising odds for another 75 bps rate hike from the FED. Another reason was the pause in rate hikes from the RBA (Reserve Bank of Australia), which might be a signal for the RBNZ. Now we expect this pair to fall below 0.60 as the FED prepares for another major hike. Although we don’t know yet if they might slow down in the coming meetings, so we will cover major central banks live here.
The Latest Dairy Auction Results
- New Zealand GDT price index +4.9%
- The previous GDT price index was -2.9%
- Whole milk powder -5.1%