11 Aug 2015
NZD/USD slumps over 1% to 0.6540 on PBOC
FXStreet (Mumbai) - The New Zealand dollar halted its recovery and dropped sharply versus its US counterpart in mid-Asia, knocking-off NZD/USD to fresh three-day lows on 0.65 handle, as the Kiwi was badly hit by latest currency moves by PBOC while heavy losses in the Aussie also dragged its OZ neighbour lower.
NZD/USD pressured on Yuan depreciation by PBOC
Currently, the NZD/USD pair drops -1.10% to 0.6547, having printed fresh three-day lows at 0.6538 some minutes ago. The NZD/USD pair snapped its minor recovery seen in early moves and plunged nearly 100 pips in reaction to the shocking move by the People’s Bank of China (PBOC), allowing Yuan to depreciate almost 2% against the greenback. The latest Yuan reference rate was set at 6.2298, prior close 6.2097. China is New Zealand’s top export destination.
Moreover, broad based US dollar rebound following Monday’s drop after Fed officials less hawkish speeches also exacerbated the pain in the Kiwi pair. While the New Zealand dollar also came under fresh selling pressure, tracking downslide in the Aussie led by PBOC and downbeat Aus NAB confidence numbers.
Markets now digest the latest news from China while awaiting US prelim unit labour cost data due later in the New York session for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600 levels and above which it could extend gains 0.6619 (Aug 4 High). To the downside immediate support might be located at 0.6502 (July 17 Low) below that at 0.6480 (2009 levels).
NZD/USD pressured on Yuan depreciation by PBOC
Currently, the NZD/USD pair drops -1.10% to 0.6547, having printed fresh three-day lows at 0.6538 some minutes ago. The NZD/USD pair snapped its minor recovery seen in early moves and plunged nearly 100 pips in reaction to the shocking move by the People’s Bank of China (PBOC), allowing Yuan to depreciate almost 2% against the greenback. The latest Yuan reference rate was set at 6.2298, prior close 6.2097. China is New Zealand’s top export destination.
Moreover, broad based US dollar rebound following Monday’s drop after Fed officials less hawkish speeches also exacerbated the pain in the Kiwi pair. While the New Zealand dollar also came under fresh selling pressure, tracking downslide in the Aussie led by PBOC and downbeat Aus NAB confidence numbers.
Markets now digest the latest news from China while awaiting US prelim unit labour cost data due later in the New York session for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6600 levels and above which it could extend gains 0.6619 (Aug 4 High). To the downside immediate support might be located at 0.6502 (July 17 Low) below that at 0.6480 (2009 levels).