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NZD/USD extends losses below 5-DMA, poor China trade weighs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The NZD/USD pair extends losses for the second straight session on Tuesday, moving further away from two-month peaks, as the bearish Chinese trade data continues to dent the sentiment.

    NZD/USD heads towards hourly 100-SMA at 0.6728

    Currently, the NZD/USD pair drops -0.56% near fresh session low of 0.6762, having faced fresh offers near 0.6785 zone. The bears remain relentless and tightened their grip following the release of awful China trade data, which showed that the exports fell sharply leading to a narrower surplus. New Zealand is heavily dependent on China for its trade.

    While sell-off among the riskier assets such as oil, industrial metals and equities also killed risk appetite across the financial markets in Asia, diminishing the demand for higher-yielding currencies such as the NZD. Moreover, nervousness ahead of Thursday’s RBNZ policy meeting further weighs on the sentiment around the bird.

    Attention now remains on the oil and stocks markets amid a lack of fundamental triggers in the day ahead.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6800 (round number), above which it could extend gains to 0.6823/46 (Mar 4 High/ Jan 4 High). To the downside immediate support might be located at 0.6728 (1h 100-SMA) and from there to 0.6688 (1h 200-SMA).
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