Global macro overview for 05/04/2017

Global macro overview for 05/04/2017:

The Global Dairy Trade Auction data revealed another increase in prices. The prices rose 1.6% following a 1.7% gain previously. Some 22,642 tons of dairy products were sold, compared to 22,498 tons sold at the previous auction. The global investors see this second increase in the row as an optimistic sign as usually the prices decrease during the spring season. In conclusion, there is still a positive and optimistic sentiment among the global investors regarding the dairy products (the prices of dairy have a big impact mostly on New Zealand Dollar), but the recent increase in stockpiles in Europe might timid their point of view. The other chance to support the positive outlook is a demand growth in China and other Asian countries.

Let's now take a look at the NZD/USD technical picture at the H4 time frame. The NZD/USD pair surged shortly after the release, rising above the 0.7000 level, but then was quickly sold and currently trades around the technical support at the level of 0.6968. The price is trading inside of the golden channel in a slightly oversold trading conditions. The next technical resistance is seen at the level of 0.7022 and 0.7046 and the next technical support is seen at the level of 0.6950.

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