- Kiwi is the worst performer among majors amid risk aversion.
- NZD/USD bearish bias strengthens after today’s slide, closer to May lows.
The NZD/USD pair is falling sharply on Wednesday breaking a 2-day consolation range. Recently bottomed at 0.6503, the lowest level in six days. As of writing, trades at 0.6505/10, consolidating important daily losses.
The Kiwi held steady after the RBNZ’s financial stability review and comments from the RBNZ’s Governor Adrian Orr and started to drop over the European session amid risk aversion across global financial markets.
The US Dollar is rising against majors and commodity currencies but it is mixed versus emerging markets. Lower US yields are not weakening the greenback, showing that the demand represents a flight-to-safety. In Wall Street, the DOW JONES is down 1.40% and the NASDAQ drops 1.15%. In Europe, main indexes are falling 1.50% on average. The DXY rose to 98.20 and is is up for the third day in a row, fully recovering from the sharp 2-day slide of last week.
NZD/USD Levels to watch
To the downside, the immediate support is seen at the 0.6500 zone followed by 0.6480 (May 23 low) and 0.6420 (October 2018 low). On the upside, resistance levels might be located at 0.6525, 0.6540 and 0.6555/60 (May 27 & 28 high).
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