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NZD/USD dives towards multi-month lows as Oil drops

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - NZD/USD’s recovery from Nov lows lost steam just below 0.6500 and the prices turned lower, now witnessing steep losses near the mid-point of 0.64 handle.

    NZD/USD: Bearish pressures intact as oil slides

    Currently, the NZD/USD pair drops over -0.46% to fresh session lows of 0.6444, having failed once again near 0.65 handle. The NZD bears fought back control at Tokyo start, and continue to drag the Kiwi towards new three-month lows reached yesterday at 0.6419 levels.

    The bearish pressure on the NZD/USD pair re-emerged this session on the back of a renewed sell-off seen in the oil prices, while risk-averse trades on the Asian markets, with China stocks extending losses, further added to the downside.

    Moreover, the AUD/USD weakness, on the back of rallying USD/CNH following a steady yuan fix today, also weighs on its OZ neighbour. In the day ahead, focus will remain on stocks and oil, while the upcoming US retail sales will be also closely eyed ahead of next week’s crucial China’s GDP data.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6491/ 0.6505 (daily high/ 1h 50-SMA), above which it could extend gains to 0.6526/36 (1h 100-SMA/ daily R1) levels. To the downside immediate support might be located at 0.6419 (Jan 14 Low) below that 0.6381 (Oct Low).
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