NZD/USD Drops to 4-Week Lows

NZD/USD Drops to 4-Week Lows

9 May 2016, 18:21
Roberto Jacobs
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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.


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