Recent economic data from New Zealand remain stable and this week Global Dairy Trade Prices rose 2.6%. After prices declined in the first four auctions of 2016, there had been gains in four of the last six releases with tentative evidence that a bottom is in place. Prices, however, remain around 15% lower than the recent peak in September 2015 and over 50% lower than the prices prevailing in early 2014.

Since January 2016 NZDUSD slowly moving higher and the pair moved around 700 pips higher before retracing down around 250 pips. However, overall trend this year remain bullish. I am expecting price to continue going up towards 0.7200 level in coming weeks. The best option would be to wait for bearish retracement towards 0.6660 level and then look for buying opportunities.

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