NZD/USD decline turns dramatic

FXStreet (Córdoba) - The kiwi is the worst performer among commodity currencies and recently made a dramatic decline following by a strong rebound. NZD/USD bottomed according to some trading platforms at 0.6080, other located the lows at 0.6210; currently it trades at 0.6440/60, more than 200 pips below Friday’s closing price.

The pair’s volatility jumped with the bearish run and then by the recovery. Despite moving off lows, the pair remains under pressure, like the other commodity currencies.

On Friday NZD/USD reached levels on top of 0.6700 for the first time in three weeks, and today it reached multi–year lows. The pair is moving around the important medium-term support area located at 0.6500 – 0.6450.

Volatility is likely to remain elevated as Wall Street opens with decline in main indexes of more than 3%.

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