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NZDUSD
NZDUSD

NZDUSD Slumps to YTD Lows after Business Confidence Disappointment

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Nikolas Papas Forex Analyst
    Summary:
  • NZDUSD trading 0.56% lower at 0.6258 after the New Zealand business confidence for September came in at -53.5 from -52 previously; analysts forecasts was

NZDUSD trading 0.56% lower at 0.6258 after the New Zealand business confidence for September came in at -53.5 from -52 previously; analysts forecasts was -58.5. Last week RBNZ monetary policy committee left interest rates unchanged at 1% as expected by markets. The central bank noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence.

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NZDUSD Technical Levels

NZDUSD trades close to 4-year lows at levels that we haven’t seen since August 2015.  The recent rebound stalled at the downtrend line around 0.68 and the bearish trend resumed driving the price today to fresh yearly lows. On the upside, immediate resistance stands 0.6294 today’s high, and then at 0,6309 the Friday’s high. On the downside, immediate support stands at 0.6255 daily low and then at 0.6235 the lows from September 2015; The RSI managed trading out of the oversold area giving room for further downside move. NZDUSD short term outlook is bearish, and a visit down to 2015 lows now looks possible. Patient traders should wait for a convincing rebound above the 0.6421 where the 50-day moving average crosses to enter long positions.