Back
18 May 2015
NZD/USD deep in red around 0.7430
FXStreet (Mumbai) - The New Zealand started the week on a weaker note against the American dollar during the Asian session, keeping NZD/USD deep in red near 0.74 barrier. The Kiwi extends its bearish momentum in Asia after the NZ government announced new policies to cool the overheated housing markets over the weekend spurred increased RBNZ rate cut bets.
NZD/USD recovers from 0.7417
Currently, the NZD/USD pair trades lower by -0.53% at 0.7434, retreating from 0.7417 session lows. NZD/USD remains weak as the NZD was heavily sold-off on increased chances of a rate cut in New Zealand this year when the government announced a capital gains tax on housing on Sunday, which subsequently pushed the Kiwi lower.
Moreover, falling Chinese new home prices raised concerns over economic recovery in China which also contributed to the downside in NZD/USD. China is the Kiwi nation’s top export destination. While broad based US dollar strength also weighed on the Kiwi pair.
Meanwhile, markets now turn focus on NZ inflation expectations due tomorrow for further momentum in absence of significant macro data to be released in the day ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7454 (Today’s High) levels and above which it could extend gains to 0.7500 levels. To the downside immediate support might be located at 0.7417 (Today’s Low) levels below that at 0.7400 levels.
NZD/USD recovers from 0.7417
Currently, the NZD/USD pair trades lower by -0.53% at 0.7434, retreating from 0.7417 session lows. NZD/USD remains weak as the NZD was heavily sold-off on increased chances of a rate cut in New Zealand this year when the government announced a capital gains tax on housing on Sunday, which subsequently pushed the Kiwi lower.
Moreover, falling Chinese new home prices raised concerns over economic recovery in China which also contributed to the downside in NZD/USD. China is the Kiwi nation’s top export destination. While broad based US dollar strength also weighed on the Kiwi pair.
Meanwhile, markets now turn focus on NZ inflation expectations due tomorrow for further momentum in absence of significant macro data to be released in the day ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7454 (Today’s High) levels and above which it could extend gains to 0.7500 levels. To the downside immediate support might be located at 0.7417 (Today’s Low) levels below that at 0.7400 levels.