FXStreet (Mumbai) – NZD/USD accelerates losses and now launches an attack to test the multi-year lows reached last week at 0.6244 levels as the markets continue to ditch the Antipodean ahead of the critical China trade data due tomorrow while the US session ahead lacks fresh fundamental triggers.
China data & RBNZ rate decision loom
Currently, the NZD/USD pair trades -0.49% lower at 0.6257, heading towards fresh six and a half year lows. The Kiwi remains heavily offered on Monday as markets now anticipate a rate cut by the RBNZ at its policy decision this week in wake of highly awaited Fed rate hike at its Sept 16-17 meeting.
The NZD/USD pair was badly hit last week on the back of US jobs data release. Although payrolls disappointed markets, the rest of the data were digested as favourable for the odds of an earlier rate hike by the Fed.
The Kiwi remains pressured ahead of the key China trade data and the CPI report which may lead to another bumpy week ahead. While Thursday’s, RBNZ cash rate statement may also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6303 (Today’s High) levels and above which it could extend gains 0.6373 (Sept 2 High) levels. To the downside immediate support might be located at 0.6244 (Aug 24 Low) below that at 0.6200 (early 2009 levels).
(Market News Provided by FXstreet)