24 Jul 2015
NZD/USD weakens, post RBNZ rally fizzles out
FXStreet (Mumbai) - The NZD/USD dropped on Friday on weak China data, ending the bullish tone on the Kiwi seen after the RBNZ rate cut on Thursday.
China data weakens NZD
The USD strengthened against commodity currencies after Chinese preliminary PMI printed at 15-month low in July earlier today. The AUD, which is widely tracked as a proxy of Chinese growth, fell, dragging the NZD and other commodity/Asian currencies lower with it.
The Kiwi had strengthened to a high of 0.6694 on Thursday after the RBNZ announced a 25 basis point interest rate cut and omitted the bearish comments over the NZD exchange rate.
NZD/USD Technical Levels
The spot currently trades around 0.6570; down 0.52% on the day. The immediate support is seen at the daily low at 0.6554, under which the pair could re-test 0.6497 (July 16 low). On the other hand, resistance is seen at 0.6653 (July 21 high) and 0.6694 (previous session’s high).
China data weakens NZD
The USD strengthened against commodity currencies after Chinese preliminary PMI printed at 15-month low in July earlier today. The AUD, which is widely tracked as a proxy of Chinese growth, fell, dragging the NZD and other commodity/Asian currencies lower with it.
The Kiwi had strengthened to a high of 0.6694 on Thursday after the RBNZ announced a 25 basis point interest rate cut and omitted the bearish comments over the NZD exchange rate.
NZD/USD Technical Levels
The spot currently trades around 0.6570; down 0.52% on the day. The immediate support is seen at the daily low at 0.6554, under which the pair could re-test 0.6497 (July 16 low). On the other hand, resistance is seen at 0.6653 (July 21 high) and 0.6694 (previous session’s high).