Summary:
- GDT auction result: +5.9%
- Second consecutive large rise for the milk benchmark
- NZD gaining across the board ahead of employment data (9:45 pm GMT)
The fortnightly GDT auction has concluded and the results have shown another large increase in the global milk benchmark. The latest result was an increase of 5.9% after a strong rise last time out of 4.9%. It is now three positive readings in a row and with each print exceeding the previous one it is clear that there is a strong upwards momentum to the price at present.
The latest GDT results showed another strong rise for the milk benchmark. Source: Globaldairytrade.info
The New Zealand dollar is often seen to be positively correlated to the price of milk due tot he countries large level of exports and the Kiwi has been rising across the board today. The largest gains can be seen against the GBP and the EUR, but the NZD is currently trading higher than all of its G10 peers.
The NZD is enjoying a strong day of gains. Source: xStation
Looking ahead it could be a busy 36 hours for the New Zealand dollar with the latest employment data due out tonight at 9:45 PM before the RBNZ rate decision tomorrow at 8PM. One pair involving the NZD that is presently at an interesting level is the EURNZD which has fallen in the past two days to trade at the bottom of a rising channel that has contained price for the majority of the last month.
The EURNZD is approaching a potentially key level ahead of several major events. Source: xStation