NZD/USD: Bears Relentless on RBNZ Rate Cut Leak News
The NZD/USD pair
extended weakness into a second day this Thursday as the bears retained
control amid negative RBNZ news and lower oil prices.
NZD/USD: hourly 200-SMA at 0.6840 tested
Currently,
the NZD/USD pair slumps 0.85% to 0.6860, recovering slightly from fresh
session lows struck at 0.6838 last hour. The Kiwi dived deeper in the
red this session after the RBNZ investigation confirmed March rate cut
leak by the media. However, the losses were contained after the RBNZ
came out saying; there is “no evidence that the OCR leak gave rise to
any financial market impact.”
However, the NZD/USD weakness
continues to persist as markets digest the RBNZ news, while falling oil
prices on the back of rising US crude stockpiles, also weighs down on
the resource-linked Kiwi. Further, broad based US dollar strength also
adds to the bearish pressure on the prices, with the USD index up +0.16%
around 95 handle.
Next on tap remains the US CPI and jobless claims data ahead of a slew of China economic releases due for release on Friday.
NZD/USD Levels to consider
To
the upside, the next resistance is located at 0.6906/09 (1h 50 &
20-SMA), above which it could extend gains to 0.6944/50 (daily R1). To
the downside immediate support might be located at 0.6840/38 (1h
200-SMA/ daily low) and from there to 0.6800 (round number).
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