1 May 2015
NZD/USD off fresh weekly lows near 0.7585
FXStreet (Mumbai) - The New Zealand dollar extends its losing streak for the third straight session versus its American counterpart, knocking-off NZD/USD to fresh one-week lows on 0.75 handle, after NZ FinMin Bill English said the Reserve Bank of New Zealand (RBNZ) may alter its outlook on interest rates as inflation expectations continue to decline.
NZD/USD back below 0.76
Currently, the NZD/USD pair trades lower by -0.46% at 0.7582, having posted fresh weekly lows at 0.7570 some minutes ago. NZD/USD continues its descent after the Kiwi was further dragged down by New Zealand’s Finance Minister’s comments after he stated in a speech to the Wellington Employers' Chamber of Commerce on Friday, "the Reserve Bank of New Zealand may be changing view on rates as inflation slows."
Moreover, downbeat China manufacturing PMI reading which revealed that China's manufacturing sector activity narrowly avoided contraction in April, underscoring slowdown concerns faced by the world's biggest economy, also weighed on the Kiwi. The Chinese Manufacturing Purchasing Managers' Index (PMI) was steady at 50.1 in April. China is New Zealand’s top trading partner.
Also, the rising US dollar versus its major peers after the latest set of upbeat US macro data also added to the losses in the Kiwi. Meanwhile, markets now turn their focus on ISM manufacturing PMI and revised consumer sentiment numbers from the US later in the day for further impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7610 (Today’s High) levels and above which it could extend gains to 0.7670 levels. To the downside immediate support might be located at 0.7570 (Today’s Low) levels below that at 0.7540 (April 24 Low) levels.
NZD/USD back below 0.76
Currently, the NZD/USD pair trades lower by -0.46% at 0.7582, having posted fresh weekly lows at 0.7570 some minutes ago. NZD/USD continues its descent after the Kiwi was further dragged down by New Zealand’s Finance Minister’s comments after he stated in a speech to the Wellington Employers' Chamber of Commerce on Friday, "the Reserve Bank of New Zealand may be changing view on rates as inflation slows."
Moreover, downbeat China manufacturing PMI reading which revealed that China's manufacturing sector activity narrowly avoided contraction in April, underscoring slowdown concerns faced by the world's biggest economy, also weighed on the Kiwi. The Chinese Manufacturing Purchasing Managers' Index (PMI) was steady at 50.1 in April. China is New Zealand’s top trading partner.
Also, the rising US dollar versus its major peers after the latest set of upbeat US macro data also added to the losses in the Kiwi. Meanwhile, markets now turn their focus on ISM manufacturing PMI and revised consumer sentiment numbers from the US later in the day for further impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7610 (Today’s High) levels and above which it could extend gains to 0.7670 levels. To the downside immediate support might be located at 0.7570 (Today’s Low) levels below that at 0.7540 (April 24 Low) levels.