It refers to the Global Dairy Trade Index which measures the change in the average price of dairy products sold at auction, taking place twice a month every two weeks. Moreover, the index measures the weighted-average price of nine dairy products sold at every auction. They are sampled and then compared to the previous sampling.
Why This Is Important
This is a leading indicator for New Zealand’s trade balance with other countries because rising commodity prices boost the export income.
Time of Release
The source of this index does not give an exact release time. This is why the time of this event is always listed as “All Day” or “Tentative” until the data is released on the GTD website.
How Does It Impact The Market
This index has a direct impact on the New Zealand Dollar pairs.
- Positive Reading: positive reading means higher demand, which should have a positive effect on the county’s trade balance. In return, NZD would get stronger.
- Negative Reading: this means that demand is declining, leading to lower dairy export and trade balance. In return, NZD would get weaker.
GDT Price Index Effect on NZDUSD