Isn’t a good day as hoped for the New Zealand Dollar (NZD), as it plummets the price down to less than 0.6400 against the US dollar. And from the graph given, it was also found that since the start of the year, the pair’s price has suffered badly, resulting in a loss of over 400 pips. However, today’s price drop is probably due to unfavorable news releases from the GDT Price Index.
Global Dairy Trade’s GDT Price Index published a couple of days ago, dropped dramatically to-2.9 percent, while it was expected to rise from last month’s index of-4.7 percent to 0 percent. GDT Price Indices are used to avoid a simple weighted average price from being manipulated, and to provide a more accurate representation of price movements between events.
It also believed that the US’s Philadelphia Fed Survey also played a major role in today’s NZDUSD weakening. It is a spread index of industrial conditions (manufacturing movements) within Philadelphia’s Federal Reserve Bank, which rose from 17 to 36.2, and also surpassed 12 economist estimates. The survey, which acted as an indicator of developments in the manufacturing sector, is interlinked with the ISM Manufacturing Index (Institute for Supply Management) and the Industrial Production Index. It’s also used as The ISM Index forecast.
Also, it’s not very convenient for the NZDUSD as shown in the graph below that there are only a few support levels available to support it at this point.
On the other hand, there are different levels of resistance pressure that have actively wanted to push the price to the further downward movement.
While, as we noted its steady drop from the graph above, the NZDUSD hasn’t supported the traders officially since the beginning of the year.