Heads up for New Zealand dollar traders, preview of the GlobalDairyTrade auction

For NZD traders the GDT auction every couple of weeks or so is market moving event (well, mostly).

The most recent auctions have seen big rises in the index, and the NZD has bounced from its lows after tracking sideways..

Reducing supply has been a factor cited for the bounce in the dairy index (and the NZD). Whether this can be sustained is a moot question. Expectations for drought conditions in New Zealand argue that supply may very well decline. I ain't no weatherman so I'll leave drought predictions to the experts.

For tonight's auction (it starts around midday GMT), prices are expected to rise again, Futures prices are pointing to a 5 to 10% rise.