Monday, September 21, 2015

NZD/USD: Bears in the driver’s seat, drops further to 0.6370

FXStreet (Mumbai) - The New Zealand keeps falling versus its American counterpart in the mid-Asian session, knocking-off NZD/USD to fresh session lows near 0.6370 levels.

NZD/USD pushes below hourly 50-MA

Currently, the NZD/USD pair trades -0.41% lower near fresh session lows of 0.6367, heading for a test of 0.6359 – hourly 100-MA. NZD/USD extended losses in Asia as markets sold-off the bird into the country’s weak fundamentals, while volumes remain relatively low as Japanese traders are away on account of a national holiday.

The Westpac-McDermott Miller Consumer Sentiment index fell from 113.0 in the June quarter to 106.0 this quarter. Further, separately figures released showed net migration slowing from 5,730 in July to 5,470 last month.

Moreover, diminishing demand for higher yielding currencies amid persisting risk-off sentiment exacerbated the pain in the Kiwi.

Meanwhile, markets now await US economic data, including the existing home sales and wholesale inventories, which will be reported later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6400 (Today’s High) levels and above which it could extend gains to 0.6452 (Sept 17 High) levels. To the downside immediate support might be located at 0.6359 (hourly 100-MA) below that 0.6310 (Sept 2 Low).
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