The New Zealand Dollar or Kiwi fell under the weight of King US Dollar, slumping to an overnight and fresh 2009 low at 0.5702 before bouncing to settle at 0.5760, down 3.27%. The Kiwi dipped to 0.5740 following the release of New Zealand’s Q4 GDP which matched forecasts at 0.5%, while the previous quarter’s GDP was revised upwards to 0.8% from 0.7%.
Meantime the RBNZ commented that it is aware of the current market developments and they are not unanticipated or unusual. Just yet. The Kiwi or “Bird’ as many FX traders refer to it is also part of the commodity or dollar bloc currencies and has suffered together with its bigger cousin currency, the Aussie. New Zealand’s 10-year bond rate climbed 12 basis points overnight, to 1.18%. New Zealand is also a food exporter. Which should be supportive of the economy.
NZD/USD has immediate support at 0.5730 followed by 0.5695 and 0.5670. Immediate resistance can be found at 0.5780 followed by 0.5830. Look to buy dips in a likely range of 0.5710-0.5860.