- NZD/USD has been chipping away to the downside, falling from an overnight high of 0.6848 to a New York low of 0.6799.
NZD/USD is currently trading at 0.6816 as the pair moves towards a neutral position as risk appetite stablises following some temporary calmness in the markets around Brexit and China. The bird has been weighed upon by a stronger dollar overnight and some softer New Zealand data of late.
Kiwi to drift lower
“With businesses downbeat and Q4 CPI shaping up to be soft, weaker domestic data may be weighing at the margin, despite stronger dairy prices. On the whole, we see the current environment as pretty tough for kiwi, with global growth edging lower, liquidity tightening, event risk ever-present, and the domestic outlook not so hot,” analysts at ANZ Bank have argued, adding, “We expect NZD to drift lower in time, no doubt with some bumps on the way.”
NZD/USD levels
- Support 0.6650
- Resistance 0.6860
A doji is now forming on the daily sticks which should be a warning to the bulls. Meanwhile, the bulls popped through 0.68 the figure and had the 50% Fibo that is located at 0.6929 was in view, on a break of 0.6850. A bullish run would then bring in the December high of 0.6969. On the flip side, a break of the 100-D SMA at 0.6684 with daily closes will sure up the negative bias again, especially on a break back below the 23.6% Fibo.
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