NZD/USD dropped to monthly pivot support on GDT auction disappointment

NZD/USD pair extended losses to monthly pivot support level of 0.7174 levels as Asian desks responded to a disappointing GloablDairyTrade (GDT) auction results.

Trades below 0.72

At the time of writing, the spot was trading just below 0.72 handle. The kiwi was offered once it breached 50-DMA support on Tuesday after the GDT price index fell 3% to $2,880, down from $2,975 at the previous auction two weeks ago. Whole milk powder dropped 3.8% as well. This was the first decline since July.

The focus today is on the US ISM non-manufacturing report which is likely to show the pace of expansion improved in September. Traders would also keep an eye on the employment sub index and ADP employment report. 

NZD/USD Technical Levels

A break above 0.7211 (session high) could yield a move to 0.7258 (50-DMA), above which a psychological resistance of 0.73 could be put to test. On the other hand, a breakdown of support at 0.7174 (monthly pivot support) would expose 0.7140 (100-DMA), under which the pair could test 0.71 (zero figure).