NZD/USD Cracks 0.6800 on Risk-Off, Poor NZ Data
The offered tone around the NZD gathered pace in the last hour, dragging NZD/USD to fresh daily lows below 0.68 handle, as risk-off moods intensified amid sharp declines in the Asian equities.
NZD/USD fails once again near 0.6850 and drops sharply
Currently, the NZD/USD pair trades -0.34% lower at fresh session lows of 0.6802, notwithstanding 0.68 barrier. The bird remains under pressure so far this session, having reversed a 3-day recovery stint, as dismal domestic economic data continues to weigh heavily on the Kiwi. New Zealand’s retail sales rose 0.8% in Q1, following a revised 1.1% increase in Q4 2015. Markets predicted a 1.0% rise in sales in the first quarter.
Further exacerbating the pain in the NZD/USD pair, the sentiment towards riskier/ higher-yielding currency remains poor amid falling Asian equities and oil prices. Japan’s Nikkei sinks -1.04%, while Australia’s ASX 200 drops -0.45%.
With the NZ data out of the way, attention now shifts towards a fresh batch of US macro data, including the retail sales and PPI, which will provide fresh momentum on the major. While a slew of Chinese economic data due tomorrow will be also eagerly awaited, as China is New Zealand’s top export destination.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6820/39 (daily high/ 50-DMA), above which it could extend gains to 0.6853/0.6900 (1h 200-SMA/ round number). To the downside immediate support might be located at 0.6726 (100-DMA) and from there to 0.6700/0.6653 (round number/ 200-DMA).