NZD/USD tested 30-month lows ahead of 0.65 amid risk-off
- Kiwi tracks Aussie lower, as US-Japan trade worries fuel risk-aversion.
- NZD/USD finds support from the oil-price rally, as focus shifts to US PPI data.
The NZD/USD pair is seen making minor-recovery attempts last hour, having tested the 30-month lows reached at 0.6502 a day before.
NZD/USD: Trade tensions in focus
The Kiwi came under renewed selling pressure in Asia amid souring risk sentiment after a new chapter in trade saga surfaced, this time with Japan under fire, as the US looks to trade talks with Japan on Sept 21st. Risk took a beating across the board, which put a bid back under the US dollar across its main peers.
Further, the Kiwi also tracked the sharp declines in its OZ neighbor – the AUD, after the two-year AU-US bond yield spread has hit a 20-year low. The Aussie also dropped to 30-month lows below the 0.71 handle following the release of downbeat Australian Westpac consumer confidence numbers.
Looking ahead, it remains to be seen if the spot can sustain the bounce, as the USD dynamics and trade-related developments will continue to influence the broader market sentiment.
NZD/USD Technical Levels
Resistance: 0.6557 (10-DMA), 0.6619/25 (20 & 5-DMA), 0.6658 (classic R2, Fib R3)
Support: 0.6502 (30-month low), 0.6450 (psychological levels), 0.6428 (Nov 2015 lows)