NZDUSD continues on positive foot for second straight session in a row, adding 0.26% higher at 0.6335 as the pair continues the rebound away from four-year lows. New Zealand’s manufacturing PMI in September came in unchanged in August at 48.4. NZDUSD felt pressure after RBA cut interest rates and investors increase bets that RBNZ will follow. RBNZ, in its last monetary policy committee, left interest rates unchanged at 1% as expected by markets. The central bank noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence.
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NZDUSD Support and Resistance
NZDUSD trades today at two-week highs helped the positive sentiment around trade negotiations between China and USA. On the upside, immediate resistance stands 0.6337 today’s high, the next target is the 50-day moving average at 0.63623. On the downside, immediate support stands at 0.6314 daily low and then at 0.6254 the low from October 3rd, a convincing break below might force the pair down to 0.6169 the lows from June 2009. NZDUSD short term outlook is neutral now but for the long term the momentum is bearish, a visit down to 2015 lows can’t be ruled out.Download our latest quarterly market outlook for our longer-term trade ideas.
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