FXStreet (Orlando) – The New Zealand Dollar is currently consolidating its near 5-year lows below 0.7000 as the pair found buying interest at 0.6965 after falling from 0.7200. The drop was driven by the RBNZ that cut interest rates for the first time in 5 years.
The reaction following the RBNZ’s interest rate was furious as the NZD/USD collapsed 240 from 0.7200 to its lowest level since September 2010 at 0.6965. After bottoming at this level, the pair found some buying interest that allowed the pair to consolidate just below 0.7000.
NZD/USD live
Currently, NZD/USD is trading at 0.6996, down 2.88% on the day, having posted a daily high at 0.7084 and low at 0.6966. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is strongly bearish.
NZD/USD Forecast
According to Currency Strategist at Scotiabank Eric Theoret, focus for NZD/USD remains to the downside towards 0.6850. “NZD is flirting with a break of 0.7000, shifting the focus to expected support between 0.6800 and 0.6850. Momentum indicators are bearish, however we note that they have diverged from spot and are suggestive of positive divergence.”
As for technical levels, if the pair manages to bounce further, 0.7000 is the next resistances ahead of 0.7035 and 0.7050. To the downside, supports are at 0.6980. 0.6960 and 0.6950.
(Market News Provided by FXstreet)