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NZD/USD off-2 month lows, recovers to 0.6500

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The NZD/USD pair is making recovery attempts just shy of 0.65 handle in the mid-Asian trades, having tested Nov-end lows near 0.6465 region on its way down from 0.6590 tops.

    NZD/USD smashed on reducing risk-appetite

    Currently, the NZD/USD pair trades -0.40% lower at 0.6491, reversing a dip from fresh two-month lows struck at 0.6467 in early Asia. The Kiwi recovers from multi-week lows and trims loss, although the recovery remain fragile as the risk-off trades persist at full steam and appears to kill the demand for higher-yielding currencies, with investors running for cover in wake of crashing global equities alongside oil. The Shanghai Composite index drops -1.85% while the Nikkei 225 index declines -3.66%.

    Markets looked past upbeat China trade figures, with positively surprising exports, as the oil rout returns to markets squashing investors’ appetite for risky assets by refuelling global growth concerns, particularly in China. China is New Zealand’s top trading partner.

    Nothing of note for the NZD in the day ahead, and therefore, the focus will remain on the today’s employment and Friday’s retail sales data from the US.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6516 (5-DMA/ daily pivot), above which it could extend gains to 0.6557/60 (1h 100-SMA/ daily R1) levels. To the downside immediate support might be located at 0.6463 (Nov 19 Low) below that 0.6424 (Nov 18 Low).
    For more information, read our latest forex news.
     

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