Key risks ahead of Kiwi today

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.