NZD/USD (current price: 0.7135)
The New Zealand Dollar declined strongly in early trading, and the pair extended losses throughout the day and this morning in early trading as well. Negative data regarding the dairy market and the New Zealand economy sparked the decline that pushed the pair below several key support levels. The RBNZ now seems more likely to cut interest rates, especiallygiventhe bearish Chinese trade data.
Our assessment: NZD/USD is now close to the crucial 0.70 level that could serve as support if the cutrent drop continues.
