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NZD/USD: Bears relentless on RBNZ rate cut leak news

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The NZD/USD pair extended weakness into a second day this Thursday as the bears retained control amid negative RBNZ news and lower oil prices.

    NZD/USD: hourly 200-SMA at 0.6840 tested

    Currently, the NZD/USD pair slumps 0.85% to 0.6860, recovering slightly from fresh session lows struck at 0.6838 last hour. The Kiwi dived deeper in the red this session after the RBNZ investigation confirmed March rate cut leak by the media. However, the losses were contained after the RBNZ came out saying; there is “no evidence that the OCR leak gave rise to any financial market impact.”

    However, the NZD/USD weakness continues to persist as markets digest the RBNZ news, while falling oil prices on the back of rising US crude stockpiles, also weighs down on the resource-linked Kiwi. Further, broad based US dollar strength also adds to the bearish pressure on the prices, with the USD index up +0.16% around 95 handle.

    Next on tap remains the US CPI and jobless claims data ahead of a slew of China economic releases due for release on Friday.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6906/09 (1h 50 & 20-SMA), above which it could extend gains to 0.6944/50 (daily R1). To the downside immediate support might be located at 0.6840/38 (1h 200-SMA/ daily low) and from there to 0.6800 (round number).
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