NZD/USD drops further on stronger USD and a decline in dairy prices

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - NZD/USD extended the decline and reached a fresh 6-day low at 0.6734. Currently is trading at 0.6740/45, down 0.65% for the day.

    The kiwi dropped sharply during the American session and made a strong reversal across the board. NZD/USD reached 0.6840, the highest level since the beginning of the week and then lost strength. Today following Fonterra’s auction where the GlobalDairyTrade price index showed a decline of more than 3% it accelerated the decline. Also the US Dollar recovered ground in the market and pushed the pair even lower.

    NZD/USD continues to retreat after hitting last week at 0.6898 the highest level in three months. Despite falling today for the third day in a row, still trades more than 300 pips above the level it had at the beginning of the month.

    AUD/NZD soars

    The decline of the NZD in the market pushed AUD/NZD sharply to the upside. The pair is having the best performance in a month. After testing a key support, near 1.0620/30 (Oct 15, 16 & 20 lows) it jumped to 1.0760, the highest level since last Thursday.
    For more information, read our latest forex news.

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