Summary:
- NZD enjoying a strong rise today. NZDUSD +1.3%
- NZDUSD now retesting the 21 EMA on D1
- Increase in GDT auction adds to Kiwi rally
The New Zealand dollar is one of the best performing currencies today, with the Kiwi surging across the board. NZD has risen against all of its major peers with gains in excess of 1% seen against the US dollar and the Euro.
The NZD is rising strongly today, with the currency sitting on +1% gains against both the USD and EUR. Source: xStation
The fortnightly Global Dairy Trade (GDT) auction can have an impact on the New Zealand dollar, with the currency sensitive to the price of milk due to it being its largest export. The most recent result has shown an increase of 0.3% in the GDT index. Whilst this isn’t a major increase it is the first rise in 3 releases (and only the second positive reading in the last 6) and has aided the already rallying New Zealand dollar.
The latest GDT price index rose by 0.3% providing a boost tot he already rallying NZD. Source: globaldairytrade.info
The NZDUSD has been trending lower for quite some time now after hitting apeak of 0.7557 back in July. The 8 and 21 EMAs on a daily chart have identified the trend successfully for much of the year and these still indicate the market is in a downtrend (8 below 21). However, the size of today’s green candle has seen price move up to retest the 21 EMA (yellow line) and should there be much more upside then there is the possibility of a change of trend.
The NZDUSD remains in a downtrend according to 8 and 21 period EMAs but today’s rally could be the first sign leading to a trend change. Source: xStation