NZD/USD Closed at -0.45% , hitting its lowest mark since 11 May 2017
This is an area that’s been supportive in the past, so it makes sense that the buyers might be attracted. However, I still believe that it’s difficult to buy this market, least until we clear the 0.69 handle as it shows continuation of the buying pressure. If we were to roll over and break below the 0.68 handle, that would be a very negative sign for the New Zealand dollar, perhaps sending it down to the 0.65 level after that. Remember that this pair is highly correlated to the risk appetite of trading around the world, and right now it looks likely that the stock markets around the world are trying to roll over, which of course is a negative sign for risk appetite.
This is an area that’s been supportive in the past, so it makes sense that the buyers might be attracted. However, I still believe that it’s difficult to buy this market, least until we clear the 0.69 handle as it shows continuation of the buying pressure. If we were to roll over and break below the 0.68 handle, that would be a very negative sign for the New Zealand dollar, perhaps sending it down to the 0.65 level after that. Remember that this pair is highly correlated to the risk appetite of trading around the world, and right now it looks likely that the stock markets around the world are trying to roll over, which of course is a negative sign for risk appetite.