Yahoo Finance The New Zealand dollar falls during hectic Friday session
The New Zealand dollar breaking down towards the 0.72 level is very significant due to the longer-term structure of the market. If we can continue to go lower and break down below this level on a daily close, I think that the New Zealand dollar will probably unwind down to the 0.68 handle. Otherwise, if we turn around and break above the 0.7250 level, then the New Zealand dollar will be carving out a bit of a base for itself, perhaps reaching towards the 0.7350 level. Remember that the New Zealand dollar is highly sensitive to risk appetite, so pay attention to how the stock markets and of course the commodity markets are doing as they are both so influential on where money flows.
Trade war concerns between the United States and China abating could be good for the New Zealand dollar as well, as the Kiwi dollar is highly leveraged to China itself. I believe that ultimately, this market will find buyers, but the question now will be whether we find it now, or if we find it a little bit lower. I think that a bounce is coming, and I am more than willing to take advantage of that bounce, but I also recognize that there is a nice short-term selling opportunity below the 0.72 handle. Regardless what happens next, you can count on a lot of volatility but that’s nothing new in this pair.
NZD/USD Video 23.04.18
This article was originally posted on FX Empire
