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breaking news NZDUSD is trading at a new low since March 2020


NZDUSD falls to its lowest level since March 2020

The NZDUSD

NZD/USD

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered at virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered at virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
Read this term closed last week at 0.5990, just below the important 0.6000 level. The price has dropped this week. Monday’s high hit 0.60007 – call it 0.6000.

The price just made a new low of 0.57498. From the high, it’s down 251 pips or 4.18%. That’s pretty big movement in weeks.

Looking at the daily chart above, price broke below a swing zone between 0.5909 and 0.5921 and corrected back into that zone on Wednesday, to find willing sellers. Bearish. The price is trading at the lowest level since March 24, 2020. The pandemic low reached much lower at 0.54668. So there is still room to roam.

A near level of risk on the daily chart above could be the April 2020 low at 0.58425 ahead of the broken trendline on the daily chart and the swing zone near the 0.5920 area.

Moving down to the hourly chart below, price fell back below a former trendline today and stayed below that level on a corrective move in the New York session (see the green numbered circle 7).

The past few hours have seen an acceleration to the downside as stocks continue to run lower and risk sentiment has prevailed.

If the buyers were to gain more control over the hourly chart, it would need to move back above the former trendline to lessen the bearish bias. This level is approaching 0.5810 (and moving lower). Move back above this level and we could see a run towards the daily targets at 0.58425 and 0.5920. Until then, the bears remain in control.

NZDUSD back below former trend line (numbered green circles)


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