NZDUSD higher on Dairy auction

The results of NewZealand’s dairy company Fonterra’s lastest milk auction seems to have caused a knee jerk reaction higher on the NZDUSD. Fonterra said the average selling price for whole milk powder was $2.301 a metric tonne, up 26% on a month ago. Dairy products account for a quarter of NewZealand’s export earnings.

The NZDUSD is higher over the last few hours, up from 6660 to 6740. There has been a knock on effect with the AUDUSD as well dragged up with it from 8415 to 8450.