NZD/USD sinks below 0.7300

FXStreet (Mumbai) - NZD/USD extended losses and drops to fresh five week lows in the mid-Asian session, largely driven by a broadly stronger US dollar, as traders ignore upbeat NZ retail card spending numbers.

NZD/USD fell to 0.7281 levels

Currently, the NZD/USD pair trades -0.91% lower at 0.7289, quickly recovering from a brief dip to fresh five week lows at 0.7281 levels. NZD/USD prolongs its decent as a strengthening US dollar against its major counterparts backed by increased speculations of an earlier Fed rate-hike, weighs on the Kiwi. Moreover, NZD/USD extends losses also mirroring the downslide in the Australian neighbour after business confidence outlook diminished in Australia.

Further, the downtrend in NZD/USD was accelerated after Chinese producer-price slumped in February, largely affecting the New Zealand economy as China is the kiwi nation’s top trading partner.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7341 (Today’s high) levels and above which it could extend gains to 0.7349 (Jan 29 High) levels. To the downside immediate support might be located at 0.7234 (Feb 2 Low) levels below that at 0.7174 (Feb 3 Low) levels

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