The New Zealand dollar is gaining against the greenbacks after the Federal Reserve indicated that an interest rate increase is highly unlikely this month. The kiwi dollar posted gains hours before the release of Fed’s minutes of its last meeting.
The minutes was released today and showed that the majority of the board members agree that rate hikes should be approached with caution, sending the US dollar to bearish territory after a slight recovery in earlier sessions.
The Global Dairy Trade (GDT) price index released on Wednesday was also a good news for the bird especially for New Zealand’s main export, whole milk powder, whose prices rose by 1.5 percent. Cheddar prices also moved up by 10.5 percent. The entire GDT index climbed by 2.1 percent after last reading’s 2.9 percent fall.
China, New Zealand’s largest trading partner, will release trade data and its Q1 GDP next week. This will inject further volatility into the kiwi dollar.
The pair is now trading at a range of 58 pips. The first support is at 0.6799 and 0.6765 subsequently. The first resistance is at 0.6868 and 0.6902, subsequently.
The MACD indicator is in a neutral position. The price is rising.