NZD/USD – Doji formation ahead of GDT auction

The NZD/USD pair formed a Doji candle on Monday, which suggests indecision on the part of traders ahead of the Global Dairy Trade price auction.

Hovers around 0.71 handle

The spot was last seen trading around 0.71 handle. At the last auction, the average price of whole milk powder (WMP) fell almost 8%. The GDT price numbers came out weak at -3.9%. The decline in prices at the start of the year rocked the dairy futures.

As per NZ Herald reports, "Futures market trading is pointing to a mild improvement in dairy prices at this week's GlobalDairyTrade auction after a surprisingly weak start to the year."

NZD/USD Technical Levels

A break below 0.7086 (200-DMA) would open doors for the downward sloping 50-DMA level of 0.7062. A violation there would expose 0.70 (zero levels). On the other hand, a break above 0.7118 (session high) could yield a rally to 0.7150 (100-DMA) and then to 0.7170 (Nov 30 high).