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NZD/USD started the week on a firm note. The pair fell to one-year low near 0.6775 ahead and after the game-changing outcome of the New Zealand election. Adjustment lower may be over for now with RBNZ turning slightly more hawkish. 0.70 is the next target.
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Kiwi looks poised to break lower
Kiwi dollar looks heavy as it holds just above 200 DMA. The currency is being weighed on by the wait for the election outcome, which could still take a few more weeks, by October 7th or even 12th.
The mentioned moving average is the immediate support and August low is the next one. If that gives way, 61.8% retracement of the May - July rally will come into focus. 0.72 is the first stronger resistance level.
The mentioned moving average is the immediate support and August low is the next one. If that gives way, 61.8% retracement of the May - July rally will come into focus. 0.72 is the first stronger resistance level.
Kiwi pulls back after hitting 0.7430
New Zealand GDP came in as expected, at 0.8% QoQ and 2.5% YoY, but that did little to support the pair which was already being offered following more hawkish than expected Fed. Pre-election adjustments also going on.
The pair traded to as high as 0.7430 yesterday but has so far retraced to 0.73. It is currently stalling near 50 DMA. Some further correction is possible with 0.7250 and then 0.72 the support levels to watch. 0.7350 is the initial resistance.
The pair traded to as high as 0.7430 yesterday but has so far retraced to 0.73. It is currently stalling near 50 DMA. Some further correction is possible with 0.7250 and then 0.72 the support levels to watch. 0.7350 is the initial resistance.