NZ GDT Overview
Global Dairy Trade (GDT) will release its dairy price index, which is published every two weeks and uses a weighted average of the percentage changes in dairy prices sold at auction. New-Zealand relies heavily on exports and up to 20% of the total its exports are made up of dairy products. Hence the index has gained relevance lately and could significantly influence the Kiwi.
The latest reading on June 19 showed a 1.2% decline in the prices for the second consecutive auction and hence, any further deterioration might further dampen prospects of any near-term recovery for the NZD/USD major.
How could it affect NZD/USD?
Ahead of the auction results, the NZD/USD pair has managed to recover over 50-pips from over two-year lows, posted earlier today, and is now holding comfortably above the 0.6700 handle. A weaker print would be enough to hinder the ongoing recovery move and prompt some fresh weakness back towards retesting sub-0.6700 level.
Alternatively, a positive surprise should assist the pair to build on its recovery move and aim towards challenging overnight swing high resistance near the 0.6790 area.
About NZ GDT price index
The GDT Price Index, released by Global Dairy Trade, uses a weighted-average of the percentage changes in prices. GDT Price Indices are used to avoid the bias of a simple weighted average price, and to give a more accurate reflection of the price movements between trading events.
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