NZD/USD Drops Towards 200-DMA as Commodities Tumble
The NZD/USD pair witnessed heavy sell-off over the last couple of hours as risk-sentiment deteriorated amid global sell-off.
NZD/USD deflates from 0.6685
Currently, the NZD/USD pair trades -0.28% at 0.6656, having posted fresh session lows at 0.6644. The Kiwi tracks the weakness seen across the commodities sector, with the sell-off in oil, gold and copper prices weighing heavily on the commodity back currency NZD.
While the losses in the Aussie on the back of dovish RA minutes, also continue to dampen the sentiment around its OZ neighbour. In the day ahead, the broader markets sentiment will continue to play a crucial role ahead of the Fonterra’s dairy auction results due later in the NY session.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6685/ 0.6700 (daily high/ round figure), above which it could extend gains to 0.6727/30 (1h 200-SMA/ 20-DMA). To the downside immediate support might be located at 0.6620 (200-DMA) and from there to 0.6550 (psychological levels).
(Market News Provided by FXstreet)
