NZD/USD (current price: 0.6789)
The New Zealand Dollar also had a bearish reversal yesterday, as it followed its closest peer, the Aussie during Tuesday’s session. The Kiwi traded close to the all important 0.685 level before the release of the GDT Dairy Price Index that showed a renewed decline of -2.4% after a few weeks of more bullish data from the segment. The quarterly PPI Input also missed expectations as the index showed a decrease of -1.0%. The pair will likely resume the decline that started earlier this month with the 200-day MA providing support at 0.665.
Our assessment: The Kiwi recovered 150 pips after hitting 0.67 last week, but the short-term trend remains bearish following the break below the multi-month rising channel.
