Greg had the dairy auction results posted overnight: The NZ Global Dairy Trade auction prices -0.4%
BNZ morning market note commentary, noting the background weighing on the kiwi dolar:
- NZD has also underperformed, down 0.7% to 0.7235 and hovering close to the lows for the session this morning. The latest GDT dairy auction defied some of the more positive indicators leading up to the auction and showed a slight fall in pricing.
- But much of the damage to the NZD was done prior to that.
- We have previously noted the vulnerability to the downside for the NZD, given the lop-sided net long speculative positioning.
- Last week we published research illustrating that following the last previous four episodes where positioning was so lopsided, the NZD has shown chunky falls over the subsequent 4, 12 and 24 weeks every single time.
