NZD/USD extends slide toward 0.7100 as US dollar strengthens

NZD/USD is falling for the third day in a row on Friday and printed a fresh 1-week low at 0.7118 as it continues to move toward 0.7100 and July lows that lie at 0.7079.

Greenback gained more bullish momentum in the market on Friday after US economic data with retail sales and industrial production data above expectations. On the other side, consumer confidence showed a decline.

NZD/USD accelerating to the downside

Yesterday the pair lost 90 pips and today so far is losing 70 as it currently trades at 0.7127/30, slight above daily lows. The kiwi came under pressure yesterday amid speculations about a rate cut from the Reserve Bank of New Zealand after yesterday it announced a brief update on its economic assessment on Thursday 21. Today the decline appears to be driven by a stronger US dollar but the kiwi still remains weak.

To the downside support levels could be seen at 0.7115/20 (daily low), 0.7080 (July low) and 0.7020 (June 29 low), ahead of the strong barrier located around 0.6970. To the upside, immediate resistance is seen at 0.7155 and then 0.7190 (European session high); above 0.7200 the bearish pressure is likely to ease.