The New Zealand dollar declined slightly against the US dollar after Global Dairy Price Index data was released. Will the downward trend continue? Find the answer in the following analysis.
3 October, OctaFX – The data showed that the index declined by 1.9% which was higher than August’s 1.5% decline. This index measures the average price of nine dairy products. It matters most to New Zealand because of the significant role of the dairy industry in the country’s economy. Today, ANZ released the commodity index which declined by minus 1.8% which was lower than last month’s minus 1.1%.
New Zealand Dollar Declines Slightly
The NZDUSD pair declined to an intraday low of 0.6567 in the Asian session. This was a continuation of an important downward trend that started in the final week of September.
As shown below, the pair is forming an inverted cup pattern, which is an indication that the downward trend will continue until it reaches the 0.6540 level. This is supported by the moving averages, Bollinger Bands, and the momentum indicator as shown below.
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