3 Feb 2015
NZD/USD falls to fresh 4-yr lows, breaks below 0.72 barrier
FXStreet (Mumbai) - NZD/USD dived to a new four year low; mirroring its Oz counterpart’s crash after the Australian Central bank joined the currency war by cutting its key rates.
Breaks below 0.7200 for the 1st time in 4 years
Currently, the NZD/USD dropped to fresh four year lows at 0.7194 levels, mimicking the fall in the Aussie after RBA announced a 25bps rate cut in its cash rate. However, the kiwi quickly regained 0.72 handle and now trades at 0.7216 levels, down -1.23% on the day. The RBA’s rate cut decision heightened speculations of RBNZ likely to follow suit in its next policy meeting. Speculation over RBA joining the easing club mounted after Bank of Canada (BOC) surprised markets with a rate cut in January.
Meanwhile, traders may focus on a deluge of economic releases from New Zealand and the US later this week to gauge further moves on the pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7266 and above which it could extend gains to 0.7300 levels. To the downside, immediate support might be located at 0.7194 levels and below that at 0.7160 levels
Breaks below 0.7200 for the 1st time in 4 years
Currently, the NZD/USD dropped to fresh four year lows at 0.7194 levels, mimicking the fall in the Aussie after RBA announced a 25bps rate cut in its cash rate. However, the kiwi quickly regained 0.72 handle and now trades at 0.7216 levels, down -1.23% on the day. The RBA’s rate cut decision heightened speculations of RBNZ likely to follow suit in its next policy meeting. Speculation over RBA joining the easing club mounted after Bank of Canada (BOC) surprised markets with a rate cut in January.
Meanwhile, traders may focus on a deluge of economic releases from New Zealand and the US later this week to gauge further moves on the pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7266 and above which it could extend gains to 0.7300 levels. To the downside, immediate support might be located at 0.7194 levels and below that at 0.7160 levels