11 Aug 2015
NZD/USD breaks range and hits fresh lows
FXStreet (Córdoba) - NZD/USD extended losses during the American session and dropped to 0.6520, reaching the lowest level since last Thursday. The pair holds a bearish tone weakened by the announcement from the PBoC.
During the Asian session the Chinese central bank devalued its currency and pushed the kiwi sharply to the downside. Initially dropped to 0.6535 and then stabilized. It moved sideways during the European session and recently broke below and declined further.
“As major exporters to China, NZD and AUD certainly shouldn’t suffer disproportionately from a policy that could ultimately improve performance lower down in the global supply chain. That doesn’t necessarily mean we think the Antipodeans are a buy here, but we think the key fundamental drivers will remain the Fed and broader commodity price developments over the medium term”, wrote analyst from TD Securities.
NZD/USD technical levels
To the downside immediate support could be located at 0.6515/20 and then 0.6485/90 (August 5 low). On the opposite direction, resistance could be located at 0.6575/80 (European session highs), 0.6610 and 0.6635.
During the Asian session the Chinese central bank devalued its currency and pushed the kiwi sharply to the downside. Initially dropped to 0.6535 and then stabilized. It moved sideways during the European session and recently broke below and declined further.
“As major exporters to China, NZD and AUD certainly shouldn’t suffer disproportionately from a policy that could ultimately improve performance lower down in the global supply chain. That doesn’t necessarily mean we think the Antipodeans are a buy here, but we think the key fundamental drivers will remain the Fed and broader commodity price developments over the medium term”, wrote analyst from TD Securities.
NZD/USD technical levels
To the downside immediate support could be located at 0.6515/20 and then 0.6485/90 (August 5 low). On the opposite direction, resistance could be located at 0.6575/80 (European session highs), 0.6610 and 0.6635.