NZD/USD remains well-offered near multi-week lows after GDT price index

The NZD/USD pair remained well-offered near multi-week lows and continues to flirt with 100-day SMA support around the 0.7135-40 band after disappointing New-Zealand milk auction results. 

The results of the latest New-Zealand milk auction held today showed the GDT Price Index dropping 3.2%, as compared to a 1.3% growth recorded in the previous auction, and price of whole milk powder falling by 3.7%. 

The outcome failed to provide any respite to New-Zealand Dollar, while persistent rise in the US Treasury bond yields continues to underpin the greenback and weigh on higher-yielding currencies – like the Kiwi.

The US Dollar price dynamics would continue to be an exclusive driver of the pair’s near-term movement and hence, investors will keenly scrutinize speeches from various Fed officials on Tuesday ahead of the FOMC meeting minutes on Wednesday. 

Technical levels to watch

Bears would be aiming for a decisive weakness below 0.7130 support, which if broken would pave way for a slide below 0.7100 handle and extension of the pair's near-term depreciating move. Alternatively, recovery from current support area might now confront resistance near 0.7165 region above which the pair is likely to aim towards reclaiming 0.7200 handle, en-route 0.7220-25 strong hurdle.