11 Jun 2015
NZD/USD drops to 0.6965, lowest since Sept 2010
FXStreet (Mumbai) - The NZD/USD pair fell to 0.6965, its lowest level since September 2010 after an upbeat retail sales and jobless claims data in the US strengthened the bid tone on the US dollar.
NZD hit by diverging monetary policy expectations
The Kiwi fell sharply as a rebound in the retail consumption and the resilience in the labor market takes Fed closer to the rate hike, at a time when the RBNZ has signaled rate cuts in the future. The NZD tanked earlier today after the RBNZ announced a 25 basis points cut.
The growing policy divergence is hurting the New Zealand dollar. However, the markets have not pushed the USD significantly higher across the board. Consequently, the NZD/USD has recovered to trade just below 0.7 levels.
NZD/USD Technical Levels
The pair currently trades at 0.6997. The immediate support is seen at 0.6987, under which losses could be extended to 0.6965. On the flip side, a break above 0.7053 could see the pair re-test 0.7100 (hourly 100-MA).
NZD hit by diverging monetary policy expectations
The Kiwi fell sharply as a rebound in the retail consumption and the resilience in the labor market takes Fed closer to the rate hike, at a time when the RBNZ has signaled rate cuts in the future. The NZD tanked earlier today after the RBNZ announced a 25 basis points cut.
The growing policy divergence is hurting the New Zealand dollar. However, the markets have not pushed the USD significantly higher across the board. Consequently, the NZD/USD has recovered to trade just below 0.7 levels.
NZD/USD Technical Levels
The pair currently trades at 0.6997. The immediate support is seen at 0.6987, under which losses could be extended to 0.6965. On the flip side, a break above 0.7053 could see the pair re-test 0.7100 (hourly 100-MA).