NZD/USD downside playing out despite spike in oil

Despite a spike in oil back above the $50 handle, NZD/USD is in free-fall in a negative day from the highs of 0.7167 down to the 0.7109 lows recently scored.

NZD/USD has been better offered at the end of this week from 0.7183 in a renewed downside leg in the 2016 sell-off from 0.7484. The RBNZ  is expected to cut rates to 1.75% in November while the Fed is expected to tighten to 0.625% in December, underpinning the resurgence i the greenback this week while data continues to come mixed. For today, 

Durable goods orders fell 0.1% to $227.3 billion in September from a month earlier. This is following two consecutive monthly increases that followed a 0.3% August increase. Initial jobless claims decreased by 3,000 to a seasonally adjusted 258,000 in the week ended Oct. 21, the Labor Department said Thursday, above expectations of 255,000. Claims for the week ended Oct. Continuing jobless claims decreased by 15,000 to 2,039,000 in the week ended Oct. 14 to the lowest level since June 2000.

NZD/USD levels

NZD/USD 1-3 month:  "Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect," Westpac 

Current price is 0.7118, with resistance ahead at 0.7122 (Daily Classic S2), 0.7138 (Daily Classic S1), 0.7138 (Weekly Low), 0.7143 (Hourly 20 EMA) and 0.7146 (Yesterday's Low). Next support to the downside can be found at 0.7110 (Daily Low), 0.7098 (Daily Classic S3), 0.7072 (Weekly Classic S1), 0.7056 (Monthly Low) and 0.6980 (Weekly Classic S2).