- NZD/USD has been drifting lower and made a fresh daily low in the correction of the recent highs as equities continue to bleed and the dollar remains on top.
- NZD/USD has been drifting lower from the 0.6810 7th Nov highs and highest since end of July.
Sentiment soured in European markets and Wall Street started to bleed out as well, weighing on the risk associated bird. With respect to stocks, the main focus was concern over weaker demand for iPhones, with Apple sliding, though President Trump tweeted that, “The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!,” as analysts at Westpac pointed out.
Currently, the Kiwi is trading at 0.6717, up from the aforementioned low having slipped from a high of 0.6757. However, analysts at NZD Bank New Zealand explained that the NZD has held above support levels despite USD strength and further weakness in equity markets overnight. "It suggests that positioning unwind is still a theme and any dips will be shallow at the present time."
RBNZ back in vogue but not quite
Meanwhile, the RBNZ has been back in vogue considering the recently improved series of economic detail, including GDP, CPI and jobs. However, the extraordinarily, the RBNZ is forecasting that inflation and employment will overshoot the targets in the medium term, yet it is not planning to remedy that by raising the OCR. If there is a sudden switch in sentiment, the bird could get a serious lift.
NZD/USD levels
- Support 0.6700.
- Resistance 0.6810.
NZD has remained elevated since the strong employment report which had sent the bird towards the 0.68 handle. On downside failures, there could be a case for a move back towards 0.68 and then onto the 161.8% extension. at 0.6870 On the downside, 0.6700 guards a break down to the 38.2% fibo retracement of the recent swing lows and highs at 0.6680.
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