NZD/USD recovers from 6-month low, stuck at trend line

NZD/USD recovered from the six-month low of 0.6883, however, the corrective move failed at the resistance offered by the trend line drawn from Oct 13 low and Nov 24 low.

NZD hurt by ‘strong dollar’ story

There is widespread speculation that the Reserve Bank of New Zealand will begin raising interest rates toward the end of 2017. However, as of now, Trump trade is dominating the broader market sentiment.

The Kiwi dropped to a low of 0.6883; the lowest since June. The GDT index dropped 0.5% with the averaged price at NZD 5283 per tonne on Wednesday morning. It was the first negative result since the beginning of October and ended a run of four straight increases.

NZD/USD Technical Levels

A corrective move would gather pace above 0.6936 (trend line hurdle). Strong resistance is seen at 0.6972 (Nov 24 low) and 0.70 (zero figure). On the lower side, failure to take out 0.6936 followed by a drop below 0.69 handles could yield a re-test of the previous day’s low of 0.6883.