AUD/NZD pops on softer dairy auction results

FXStreet (Mumbai) - The offered tone around NZD gathered pace, sending the AUD/NZD to a session high of 1.0905 levels after the GlobalDairyTrade (GDT) auction ended with a sharp fall in dairy prices.

Gains capped at 200-DMA

The spot failed to take out its 200-DMA located at 1.0905 and fell back to 1.0890 levels. The GDT price index fell 7.4% following a 1.4% drop seen in the previous auction. Milk prices also fell 10.4%, which is largely in line with an expected fall of 10%.

Earlier today, the cross clocked a low of 1.0833 levels before turning higher towards 1.09 levels.

AUD/NZD Technical Levels

A break above the immediate resistance of the 200-DMA at 1.0905 could see the pair rally to 1.0971 (Jan 29 high). On the other hand, a break below 1.0877 (5-DMA) could see the cross revisit the daily low of 1.0833.