FxWirePro: Kiwi on the defensive after diary prices plunge, good to sell NZD/USD rallies

Kiwi on the defensive after a fall in international milk prices during a second auction held this month by Fonterra.

• The GDT index fell 3.1% versus a 9.9% rise in the previous fortnight, while whole-milk powder - the most crucial commodity for New Zealand - tumbled 4.6% to $2,694
   
• The kiwi traded at 0.6729 against the Greenback after hitting fresh 1-week low at 0.6726 as milk prices slip
   
• NZD/USD is shed more than a full U.S. cent overnight and is extending losses on the day, failing twice to break above 69 U.S. cents
   
• Fitch today downgraded Fonterra to 'A'; from AA-, says Company's outlook is stable
   
• NZD/USD downside is looking vulnerable, Stochs have dipped below 80 from overbought levels and RSI is biased lower
   
• Pair has immediate support at 0.6728 (session lows Oct 18 and 4 hourly cloud base), break below could target 0.6670 levels
   

Recommendation: Good to sell rallies around 0.6730, SL: 0.6760, TP: 0.6680