NZD/USD Drops to 4-Week Lows
NZD/USD
failed to hold above 0.6800 and extended losses below. The pair
bottomed during the American session at 0.6763, the lowest level since
April 7.
From the lows it bounced modestly to the upside but
remained under pressure moving in a small range between 0.6785 and
0.6765, down more than 50 pips from Friday’s closing price.
Greenback
is rising across the board, and particularly versus commodity and
emerging market currencies. The kiwi is also lower versus the loonie and
the aussie with AUD/NZD moving away from 2-month lows.
NZD/USD testing April lows
The
pair is falling for the fourth time out of the last five trading days.
The sharp decline started after NZD/USD failed to break 0.7050 last
week.
Price went from testing multi-month highs to trade slickly
above April lows. The area around 0.6750/55 capped the decline back in
April and now that area is under pressure. A break lower would put the
price at the lowest since March.
NZD/USD is also below an
uptrend line that started back in January and also under the 20 and
55-day moving average; all bearish signals that would point toward a
test of 0.6700/20.
