Several key event risks are ahead of New Zealand Dollar today, which could push New Zealand Dollar down again. New Zealand Dollar is already trading down almost 1% against Dollar, at 0.649.
ANZ commodity prices released today for January showed, commodity prices dropped another -2.3% in January after -1.8% decline in December. Falling commodity prices, especially milk isn't a good news for Kiwi.
So today's Global dairy auction remains key focus for further fundamental move in New Zealand Dollar. After rising as much as 3.6% in December auction, milk prices have dropped -1.4% in January auction.
Next major focus will be on unemployment report for fourth quarter to be released at 21:45 GMT. After falling to 5.4% in third quarter of 2014, unemployment rate has been edging up since and today it is expected to reach as high as 6.1%. In third quarter of 2015, unemployment rate was 6%, which is much higher than 3.5% pre-crisis level.
We, at FxWirePro, expect Kiwi to drop as low as 0.6 against Dollar and it might reach further down of RBNZ eases again. Key resistance remains 0.69 area.
