NZD/USD attempts tepid recovery to 0.6500 post PBOC Yuan fix again

FXStreet (Mumbai) - The New Zealand dollar manages to recover some losses, although remains deep in the red versus its US counterpart in mid-Asia, keeping NZD/USD near fresh cycle lows, as the Kiwi was once again hammered on risk-aversion after the PBOC set the yuan reference rate lower for the second day in a row.

NZD/USD pressured by PBOC again

Currently, the NZD/USD pair drops -0.44% to 0.6505, recovering slightly from fresh six-year lows reached at 0.6468 earlier today. The Antipodean came under fresh selling pressure after the Chinese yuan was devalued against the US dollar for the second time in two days, crushing risk appetite in the markets.

The NZD/USD pair tracked losses from the Aussie which also plunged to fresh cycle lows amid broad based risk-off moods spurred by the Chinese central bank, raising doubts about the economic slowdown in the world’s second largest economy.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6557 (Today’s High) levels and above which it could extend gains 0.6600 levels. To the downside immediate support might be located at 0.6468 (Today’s Low) below that at 0.6400 (2009 levels).

USD/JPY: Greenback benefits from risk-off flows, rises to 125.25

The US dollar continues to outperform its Japanese counterpart in the mid-Asian session, driving USD/JPY to fresh two-month highs beyond 125 handle, as another round of yuan devaluation by PBOC early today has refuelled risk-off trades across the FX board with traders favouring the US currency as a safe-haven.
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Asian indices drop sharply on further Yuan devaluation

Asian stocks witnessed steep losses on Wednesday, extending declines from the previous session, as risk appetite was once again crushed after China followed up with a second devaluation on Wednesday.
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