NZD/USD (current price: 0.7040)
The New Zealand Dollar had a bearish session following Thursday’s jump, but the currency managed to stay above the all important 0.70 level for now, despite the negative change in global sentiment. The prior high near 0.705 served as served as support on Friday, but the Kiwi might remain under pressure as commodity currencies are likely to suffer, especially if oil keeps falling. The FED;s rate decision could push the pair lower, should the central bank decide on hiking its benchmark rate on Wednesday.
Our assessment: NZD/USD is above several important support levels, but international trends are likely to weigh on the Kiwi, possibly leading to a move back below 0.70.
