NZD/USD: a downside target
NZD/USD spiked down to $0.8005 today, but then the bulls pushed kiwi back to the opening level at $0.8073. Kiwi was affected by poor Chinese PMI data this morning, while USD broadly strengthened. NZD may find some help from exporter hedging demand.
Later tonight at 22:45 GMT, New Zealand will release trade balance data (surplus is expected to decline).
BNZ says a break below $0.8060 support (50% Fibo, top of the weekly Ichimoku Cloud) will bring New Zealand’s dollar to $0.7920. Westpac has the same target.
Resistance is at $0.8100, $0.8140, $0.8170. Support is at $0.8060, $0.8005/00 and $0.7975. NZD/USD is currently correcting up. Think of selling around $0.8150/60.
Chart. H4 NZD/USD