NZDUSD continues on positive foot for fourth consecutive session in a row, trading 0.02% higher at 0.6312 as the pair rebounds away from four-year lows. 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.
NZDUSD trades today in just 20 pips trading range. A weak US dollar pressured by dismal manufacturing PMI helped NZD to move away from the recent lows. On the upside, immediate resistance stands 0.6321 today’s high, the next target is the 50-day moving average at 0.6383. On the downside, immediate support stands at 0.6298 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 bearish, and a break below 2015 lows now looks possible.Download our latest quarterly market outlookfor our longer-term trade ideas.
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