NZD/USD: US dollar surges across the board and kiwi on way to 2018 lows

NZD/USD has been broken below the descending supporting trend line of the 24th and 27th July lows.
The Kiwi has been taken down as the US dollar surges across the board within the day's range of between 94.6100-95.1890.
NZD/USD has been in direct supply since the 0.6796 highs when the pair broke below the 100-4hr SMA at 0.6786.

Analysts at ANZ explained that it sounds like a broken record, but the escalation in trade tensions has once again knocked kiwi lower:

"Whether or not it is enough to break it out of established ranges is another question, though the key may be other crosses, with some sitting on key levels."

Meanwhile, eyes will soon give a glance over to the RBNZ that is just around the corner, although expectations are that the RBNZ will probably repeat that it expects to keep the OCR at its current low level for a long while.

Analysts at Westpac Banking Corporation are also expecting that the RBNZ will restate that the next move in the OCR could be “up or down”.

Additional key quotes from their outlook:

The OCR forecast will likely be unchanged, or perhaps could be shifted a tiny smidgen lower.
The economy has delivered mixed messages recently, with growth slowing but inflation pressures rising. These forces will broadly offset one another in the RBNZ’s thinking.
Like us, markets are primed for a neutral to slightly dovish Statement.

NZD/USD levels

The 10 and 21-D SMAs gave out and the price has been faded at the 10-hr SMA overnight. 0.6720 s on the cards and a break there opens the 18th July lows of 0.6713 guarding 1st July lows of 0.6689 and 0.6616 further down. This is all a congested area on the 0.66 handle, but 0.6550 guards a run to the 0.6470s. On the upside, resistance remains located at 0.6860. A break of 0.6920, the June highs, will come into focus on a follow through beyond 0.6860. The 200-month moving average resistance is at 0.7009. However, a period of consolidation is likely ahead of nonfarm payrolls and RSI is neutral on the daily sticks.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.