NZD/USD slips to its weakest level in more than three years
The slightly softer risk mood and weaker yuan today is keeping the likes of the aussie and kiwi on the back foot and we’re seeing the latter hold at its lows for the day, lingering at its lowest level since January 2016 against the greenback.
Price sits at 0.6373 currently and is testing daily support at 0.6381. Further support is only seen at 0.6348 next but beyond that, there is little stopping the pair from a move towards the August 2015 low of 0.6130.
Central bank rhetoric will be key over the next few sessions with Fed focus set to come about first via the Jackson Hole symposium. Should Powell & co. disappoint market expectations on aggressive easing, we may see the pair push lower amid the divergence in tones with the RBNZ set to continue down their dovish path over the next few months.