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 15 May 2018 showed a 1.9% rise in the price index compared to its previous release and a stronger reading would be one of the key driving forces behind further upside for the NZD/USD major.
How could it affect NZD/USD?
Ahead of the auction results, the NZD/USD pair is retreating from one-month tops and a subsequent break below the key 0.70 psychological mark might accelerate the downfall towards 0.6965-60 horizontal support.
On the flip side, momentum above the 0.7045-50 region should continue boosting the pair further towards 50-day SMA hurdle, currently near the 0.7095 region en-route the very important 200-day SMA barrier near the 0.7125-30 region.
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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