22 Jan 2015
NZD/USD slumps to fresh 2-1/2 year lows
FXStreet (Mumbai) - The New Zealand dollar extended its downward trajectory in to the early European morning, shrugging of upbeat NZ consumer confidence and manufacturing numbers released earlier in the Asian hours.
Currently, the NZD/USD traded at 0.7523 down -0.38% on the day, having posted fresh two and a half year lows at 0.7516 levels some minutes ago. The fall in the NZD/USD pair exacerbated after softer than expected NZ CPI numbers and weaker commodities prices prompted markets to predict that the Reserve Bank of New Zealand's (RBNZ) may possibly go in for a rate cut.
"There is a plausible set of circumstances under which the RBNZ could cut rates this year – perhaps involving some combination of financial turmoil offshore, falling commodity prices and a local drought," Westpac senior economist Micheal Gordon said.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7571 and above which it could extend gains to 0.7600 levels. To the downside, immediate support might be located at 0.7500 levels and below that at 0.7453 levels.
Currently, the NZD/USD traded at 0.7523 down -0.38% on the day, having posted fresh two and a half year lows at 0.7516 levels some minutes ago. The fall in the NZD/USD pair exacerbated after softer than expected NZ CPI numbers and weaker commodities prices prompted markets to predict that the Reserve Bank of New Zealand's (RBNZ) may possibly go in for a rate cut.
"There is a plausible set of circumstances under which the RBNZ could cut rates this year – perhaps involving some combination of financial turmoil offshore, falling commodity prices and a local drought," Westpac senior economist Micheal Gordon said.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7571 and above which it could extend gains to 0.7600 levels. To the downside, immediate support might be located at 0.7500 levels and below that at 0.7453 levels.