Chart: WorldWideMarkets Alpha Trader
The New Zealand dollar came under selling pressure yesterday following the weaker-than-expected results of the Fonterra Global Dairy Trade Index which fell -8.8% at the latest auction Tuesday 14:25 GMT. (average price $3,136 per metric ton)
Yesterday's event posted the first negative price in 2015 which led to the NZD weakness.
By comparison, the GDT price index was +1.1% in the previous March 15 auction, +10.1% in Feb 17th and +9.4% in Feb 3rd.
The kiwi dollar's high yesterday in Europe was 0.7405 and eased down to 0.7360 just before the dairy auction data against the rising dollar. Since then, the rate fell to the psychological support of 0.7300 in the prior Asian session and broke 0.7300 at 6:00 GMT as the European participants continued the sell off to test the low of 0.7275 in early Europe.
The market focus today will be on the FOMC announcement at 18:00 GMT where the Federal Reserve is expected to lay the groundwork for its first interest rate hike in nearly a decade.
Source: Global Dairy Trade