FXStreet (Mumbai) – The New Zealand dollar reversed previous gains and witnessed a sharp drop versus the American dollar in the European session, pushing NZD/USD to fresh multi-year lows sub 0.68 handle. The Kiwi lost footing after a set of latest weak NZ fundamentals boosted bets of further monetary policy easing by Reserve Bank of New Zealand (RBNZ).
NZD/USD rejected at 0.6849
Currently, the NZD/USD pair slumps -1.39% to fresh five year lows 0.6752, dropping nearly 100 pips from highs. NZD/USD plunged in today’s trade in running as the New Zealand dollar came under fresh selling pressure after a business confidence survey and building consents data added to the case for further policy easing.
ANZ’s Business Confidence survey showed that a net 2.3% of firms felt that the outlook for business and the economy was weaker in June. While building consents data released also painted a grim outlook for the economy, with consents showing no change last month, following a 0.9% decline in April.
The recent streak of discouraging economic data continues to stack up in favor of a July rate, following on from the Reserve Bank of New Zealand’s (RBNZ) unexpected cut on June 11.
In the US session ahead, US dollar will remain the primary driver for the Kiwi pair as traders await a slew of US macro data for fresh incentives.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6800 levels and above which it could extend gains 0.6849 (Today’s High) levels. To the downside immediate support might be located at 0.6700 below that at 0.6680 levels.
(Market News Provided by FXstreet)