The NZD / USD pair extended early losses to hit a four-day low of 0.7155 levels as sentiment around milk powder prices weakened ahead of today’s Global Dairy Trade (GDT) auction.
Milk futures weaken
Whole milk powder futures contracts for March, April and May dropped almost 5% over the last few days. Markets are expecting a 3% decline in the whole milk powder prices.
The dairy-correlated ‘Kiwi’ Dollar is likely to weaken if the milk powder prices drop more than expected.
NZD/USD Technical Levels
The spot was last seen trading around 0.7158 levels. A breakdown of the support at 0.7134 (Feb 14 low) would expose 0.71 (zero levels), under which the losses could be extended to 0.7043 (Dec 1 low). On the other hand, a break above 0.7170 (previous day’s low) would expose 0.72 (zero figure) and 0.7242 (Feb 16 high).
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