NZD/USD tracks Aussie, drops to 0.72

NZD/USD dropped to a session low of 0.7198 (5-DMA) as markets offered kiwi in line with the losses in the AUD post RBA minutes release.

Focus on GDT auction

Following an almost 7% rise at the last GDT auction all eyes will be on today’s GDT auction to see if the positive momentum can be continued. Ahead of the auction, whole milk powder (WMP) has risen sharply.  

However, that has failed to support the New Zealand Dollar. Apart from the dairy auction, the spot could also be influenced by the US CPI and housing data releases.

NZD/USD Technical Levels

The spot was last seen trading around 0.7207. A break below immediate support at 0.7198 (5-DMA) would open doors for a drop to 0.7176 (10-DMA). A violation there could yield a move lower to 50-DMA level of 0.7129.

On the other hand, breach of resistance at 0.7256 (Aug 2 high) would expose resistance at 0.73 (zero figure), above which the spot could target 0.7339 (Aug 11 high).