Currently, NZD/USD is trading at 0.7270, down -0.65% on the day, having posted a daily high at 0.7333 and low at 0.7262.
NZD/USD has dropped heavily on the back of the New Zealand inflation data for Q2: CPI 0.0% q/q (expected +0.2%) while year on year arrived at 1.7% vs 1.9%. Overall a big disappointment to the markets judging by the price action with the 0.73 handle left for dust and meeting 7th July lows right off the bat.
The greenback has managed to take up a bid despite the spectrum of poor data at the end of last week that resulted in a sell-off in the US dollar. Analysts at Westpac previously acknowledged the Fed’s tightening cycle plus US fiscal expansion that should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end.
Support:0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970. Resistance: 0.7340/76 recent highs and Feb. 7 high; 0.7393 Nov. 9 high.
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