GDT price index preview: What to expect of NZD/USD?

Global Dairy Trade (GDT) will release its dairy price index, which is published every two weeks and uses a weighted-average of the percentage changes in dairy prices sold at auction. The index has gained relevance lately, as approximately 7% of New Zealand GDP comes from milk exports.

The latest reading on March 15th showed a 2.9% decline in the price index compared to it previous release. Whole Milk Powder (WMP) futures are pricing a near 9.0% fall, which could hit the Kiwi for another leg lower.

NZD/USD technical levels

Ahead of the auction, NZD/USD was trading around 0.6776, 0.81% below its opening price as the risk-off mood continues to weigh commodity-currencies. A negative GDT reading could potentially pressure further the New Zealand dollar, while a less expected positive reading could help the NZD to trim losses.

As for technical levels, next supports are seen at 0.6715 (Mar 29 low), 0.6687 (50-day SMA) and 0.6658 (100-day SMA). On the flip side, immediate resistances line up at 0.6834 (Apr 5 high), 0.6936 (Apr 1 high) and 0.6964 (Mar 30 high) ahead of 0.7000 (psychological level).