NZD/USD breaks through 0.73 handle ahead of European markets

NZD/USD resuming the slide after erasing Thursday's gains.
Data disappointments, new RBNZ governor keeping Kiwi down.

Joshua Gibson FXStreet

NZD/USD has dropped ahead of the European markets, testing below 0.7300 as Dollar bidding returns in Tokyo trading.

The Kiwi remains in a weak position having declined for several days, the pair suffering from an incredibly muted pullback on Thursday that saw the USD decline across the board on the back of receding bond yields. The Dollar bid has returned today, sending pairs lower in Asia, and the Kiwi resumes its slump.

Economic data continues to middle, and things are largely on hold for the Reserve Bank of New Zealand (RBNZ) as they await the new governor to take over the helm of the central bank. Adrian Orr will be resuming duties at the RBNZ sometime in March; governor Orr comes to the RBNZ having held the title in the past, having governed the RBNZ for four years before departing in 2007 to take part in the New Zealand Superfund.

Until growth begins to make a firm appearance for New Zealand's economy, the Kiwi can expect to remain crimped going forward as long as the Dollar can manage to find willing buyers.

NZD/USD Technicals

Friday is shaping up to be a bearish day, and a close lower will see the pair one step closer to the 34 EMA at 0.7275, while the double top on Daily candles begins to firm up. Resistance is priced in from 0.7359 and 0.7411, with support at 0.7251.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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