At this morning’s GDT auction slightly improved by 1.4% since the last one. Kiwi dollar extends the overnight gains on Wednesday’s early session. The NZD gains four trading sessions out of five.
NZ Herald reported, Today’s gain partly offsets the previous sale’s 3.0 per cent decline in the GDT index, which occurred after a sharp spike higher over August and September.
Westpac senior economist Anne Boniface said the auction supported the bank’s view that there was some “upside risk” to the bank’s $5 farmgate milk price forecast.
“While we have been sceptical that the recent lift in dairy prices would be entirely maintained in the coming months, we have also warned that New Zealand pasture conditions would be a particularly important determinant of NZ milk production this season,” she said. “Indeed this is proving to be the case.”
“Dairy markets look to be consolidating around current price levels, supporting the view that a milk price around the $5.25-$5.50/kg mark should be achievable in 2016/17,” ANZ rural econmist Con Williams said.
NZDUSD- The cross pauses the two weeks falling streak rebounds to a week high but facing resistance at 20Dsma on Tuesday’s session. Today (Oct 19) on Asia session the cross remains below 20Dsma seems at 0.7200.
The next potential resistance seems at 0.7220 Sep low and 0.7250 50Dsma. The daily RSI finds at 49.
Alternatively, support finds at 100Dema 0.7140 levels.