“¢ Fall in the Chinese Yuan dents investor sentiment and prompts some fresh selling.
“¢ Technical selling below 0.65 mark further aggravates the downward momentum.
“¢ Today’s advance US Q3 GDP growth figures will be looked upon for fresh impetus.
After a modest uptick to an intraday high level of 0.6532, the NZD/USD pair came under some aggressive selling pressure and tumbled to over two-week lows in the last hour.
The pair extended this week’s retracement slide from levels just above the 0.6600 handle and kept losing ground on the last trading day of the week, marking its fourth day of decline in the previous five.
With the US Dollar consolidating overnight strong upsurge to over two-month tops, a slight deterioration in risk-appetite was seen weighing heavily on perceived riskier currencies, including the New-Zealand Dollar.
Despite the overnight strong rally in the US equity markets, renewed weakness in the Chinese Yuan, to a fresh multi-month low, dented investors sentiment and prompted some fresh selling during the Asian session.
This coupled with a weaker tone around commodity space exerted some additional downward pressure on the commodity-linked Kiwi and further collaborated to the pair’s ongoing downfall.
Meanwhile, possibilities of some technical selling below the key 0.6500 psychological mark could also be attributed as one of the key factors exerting pressure on the major.
Moving ahead, investors now look forward to the advance US Q3 GDP growth figures, due for release later during the early North-American session, for some fresh impetus and meaningful trading opportunities.
Technical levels to watch
A follow-through selling pressure could extend the slide towards the 0.6445-40 support area before the pair eventually drops to test the 0.6400 round figure mark. On the flip side, the 0.6500 handle now becomes immediate resistance, above which a bout of short-covering could lift the pair further towards 0.6540-45 supply zone.
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