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NZD/USD: Bears relentless, back below 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The NZD/USD pair faded minor-recovery attempts after a bearish opening gap, and now dives deeper in the red as the sharp decline in the Chinese stocks weighed on the sentiment.

    NZD/USD once again breaches key support near 0.6585

    Currently, the NZD/USD pair sinks 0.83% to 0.6575, heading for a retest of daily lows struck at 0.6568 earlier today. The sellers found fresh impetus over the last hours after the Chinese stocks plunged at the week open, with the markets giving up higher yielding assets in favour of safe-havens.

    The Kiwi witnessed an almost 40-pips bearish opening gap after the NZ confidence and building consents data deteriorated significantly in the reported period and bolstered the case for more RBNZ easing in the upcoming months. The ANZ Business Outlook gauge slumped to 7 in February, down significantly from 23% when the survey was last conducted in December. A separate release on Monday revealed that building consents fell 8.2% month-on-month in January, the steepest decline since August.

    Focus now remains on the crucial US payrolls data due later this week, while in the day ahead, the bird will continue to track the broader market sentiment.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6600 (Major resistance), above which it could extend gains to 0.6637/42/45 (5,10 & 20-DMA). To the downside immediate support might be located at 0.6543 (Feb 16 Low) and from there to 0.6507/00 (Feb 3 Low/ round number).
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