NZD/USD testing lows
New Zealand currency extended losses, following the hawkish Fed’s comments and a worse than expected NZ Q1 GDP. Yesterday’s data showed New Zealand’s economic growth slowed to 0.3% q/q (previous: +1.5%, forecast: +0.5%). Downbeat China’s PMI added to investor’s pessimism.
As a result, kiwi returned to the June lows at $0.7740 (yearly lows). As of writing, the pair recovered a bit, but remains below $0.7800. The current picture looks strongly bearish and a daily close below $0.7760 would open the way to $0.7450 (2012 lows). Our bearish view will remain active below $0.8140.
Chart. Daily NZD/USD