FXStreet (Mumbai) – The New Zealand languishes near five-year lows against the American dollar in the mid-Asian session, now pushing NZD/USD to session lows on the 0.66 handle. The Kiwi extends its bearish momentum and trades lower as markets digest the latest New Zealand NZIER Business Opinion Survey for the second quarter.
NZD/USD drops from 0.6683
Currently, the NZD/USD pair trades lower by -0.25% at 0.6669, hovering close to fresh session lows reached at 0.6665. The Kiwi came under renewed selling pressure in early moves after the latest NZIER Quarterly Survey of Business Opinion shows the New Zealand economy losing momentum.
The drop in activity indicators in the June 2015 quarter points to annual growth remaining below 3% over the coming year – a marked drop from the 3.5% annual growth we saw at the end of last year. The sluggish survey released suggested the need for further policy easing this year in a bid to spur the NZ economic growth.
More so, the NZD/USD pair kept losses tracking the downslide in its OZ counterpart ahead of RBA rate decision. While lower commodities prices also kept the Kiwi undermined.
Looking ahead, markets now eye RBA rate decision and US trade balance data for further incentives on the pair as the economic calendar remain quiet for New Zealand’s domestic events for the rest of this week.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6683 levels and above which it could extend gains to 0.6715. To the downside immediate support might be located at 0.6650 (June 2010 levels) below that at 0.6600 levels.
(Market News Provided by FXstreet)