New Zealand Dollar Falters after Dairy Prices Fall at Auction
The New Zealand Dollar moved slightly lower versus the Dollar and the Pound after the release of Global Dairy Trade (GDT) Prices on Tuesday.
GDT prices are fixed at a bi-weekly global auction of a variety of Dairy products, the largest of which is dried whole milk.
Dried whole milk is New Zealand’s largest single export and is, therefore, important to the economy and an influence in the New Zealand Dollar (Kiwi).
At the GDT auction on Tuesday, prices fell by -3.2% in the two weeks up until Feb 21.
The Kiwi reflected this by losing six basis points against the Dollar from 0.7137 to 0.7131 and losing 14 basis points versus sterling, such that GBP/NZD rose from 1.7398 to 1.7412.
"The index has been flatish since November. The kiwi ticked slightly lower on the results," commented Analyst Adam Button of Forexlive.com
