- NZD/USD’s sell-off continues for the fourth straight day on dismal domestic data.
- The widening of NZ-US yield spread has failed to put a bid under the NZD.
NZD/USD is flashing red for the fourth straight day and is currently trading at 0.6293, the lowest level since September 2015.
On a week-to-date basis, the currency pair is down 1.57%. Also, the currency pair looks set to end lower for the sixth straight week.
Also, the pair is down nearly 4% on a month-to-date basis.
Notably, the sell-off seen in the last 24 hours could be associated with the ANZ business confidence survey released on Thursday, which showed companies are most pessimistic about their own future prospects since 2009.
The pair is now looking oversold, according to the 14-day relative strength index (RSI). The price chart, however, is showing no signs of seller exhaustion and the pair could end up falling to 0.6236 (September 2015 low).
It is worth noting that the spread between the New Zealand and US 10-year government bond yields has risen by more than 10 basis points this month. That, however, has failed to put a bid under the NZD.
Pivot levels
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