The kiwi was already on the back foot in the recent USD storm, and the better than expected ISM Manufacturing PMI sent it to a new low, to levels last seen since July 2013.
The previous level was 0.7706 and the low so far is 0.7697 — more coming
The pair is bouncing after the initial drop. Is it a false break? And if it is one, will it be later followed by a real break? The pair bounces all the way to 0.7730. That’s a big bounce.
The New Zealand dollar suffered from the recent rate decision in New Zealand. Not only did the central bank foresee a drop in NZD, but also hinted about the end of the tightening cycle.
On the other side of the world, the Fed ended QE and was bullish on the US job market. The USD strength certainly extended into the new week, mostly hurting the weaker currencies like the yen.
The big event in New Zealand this week is the release of quarterly employment data. See NZD/USD levels, events and analysis in the kiwi/dollar forecast.
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