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2 Apr 2014
NZD/USD prints daily bearish reversal, fall in dairy prices weigh
FXStreet (Bali) - Dairy product prices suffered the largest 1-day drop in over one year and a half at Fonterra's latest GlobalDairyTrade auction.
Whole milk powder posted a new one year low, with the GDT price index (total quantity sold in a trading event across all products, contract periods and sellers) falling 8.9% to US$4,124 a tonne from US$4,563 per tonne two weeks ago.
The latest decline in dairy products has weighed in the NZD/USD, which printed a key daily bearish reversal off the 0.8670 resistance. A break through 0.8630 may see downside pressure increase short term, potentially target the 0.86 round number.
Whole milk powder posted a new one year low, with the GDT price index (total quantity sold in a trading event across all products, contract periods and sellers) falling 8.9% to US$4,124 a tonne from US$4,563 per tonne two weeks ago.
The latest decline in dairy products has weighed in the NZD/USD, which printed a key daily bearish reversal off the 0.8670 resistance. A break through 0.8630 may see downside pressure increase short term, potentially target the 0.86 round number.