FXStreet (Mumbai) – The NZD/USD pair dipped below 0.70 in the early European session as the traders ditched NZD on the relative monetary policy divergence.
Rejected at 0.7022
The pair ran into offers at a high of 0.7022 as RBNZ’s rate cut in the previous session underscored the growing policy divergence between the US Fed and the RBNZ. The pair printed a low of 0.6965 in the previous session before recovering to 0.7012.
However, fresh selling pressure today ensured the pair fell back below 0.70 to trade at 0.6979 levels at the time of writing. Though major investment banks are indicating a further fall in the pair, a corrective rally may be seen as short NZD positions are squared off ahead of the weekend.
NZD/USD Technical Levels
A break below 0.6965, under which the pair could target 0.69. On the other hand, a break above 0.7023 could see the pair rise back to 0.7100 levels.
(Market News Provided by FXstreet)