New Zealand GDT Price Index is released every two weeks. It measures the change of price in dairy products sold at auction. A reading which is higher than the market forecast is bullish for the New Zealand dollar.
Here are the details and 5 possible outcomes for NZD/USD.
Published on Tuesday (Tentative).
Indicator Background
This indicator is closely watched as the dairy sector is an important part of the export industry, and strong dairy prices can boost the exchange rate.
The most has posted strong gains in recent readings and climbed 7.7% earlier this month. Will the indicator record another sharp gain in the upcoming release?
Sentiment and Levels
The RBNZ rate decision, which will be released just hours after the Federal Reserve statement, could keep the kiwi depressed even if Yellen remains dovish. So, the overall sentiment is bearish on NZD/USD towards this release.
Technical levels from top to bottom: 0.7460, 0.74, 0.7330, 0.7290, 0.7160 and 0.7050
5 Scenarios
- Within expectations: 4.0% to 7.0%: In this scenario, NZD/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels.
- Above expectations: 7.1% to 11.0%: A strong reading could push the pair above one resistance level.
- Well above expectations: Above 11.1%: A sharp rise in the indicator could propel NZD/USD upwards, and a second resistance line could be broken.
- Below expectations: 0.0% to 3.9%: A lower than expected reading could pull the pair downwards, with one support level at risk.
- Well below expectations: Below 0.0%: A decline in the indicator could push NZD/USD below a second support level.
For more on the kiwi, see the NZD/USD forecast.
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