NZD/USD (current price: 0.7312)
The New Zealand Dollar had an encouraging session, as it followed the Australian Dollar and the Canadian Dollar higher in early trading, and held up well, later on as well. The Kiwi finished the session near the 0.73 level, bouncing off the 0.7250 support line, leaving the primary support at 0.72 intact, despite the deep correction in the past two weeks. The Westpac Consumer Sentiment Index rose in August to 108 from a reading of 106 one month earlier, as domestic demand seems to be holding up well.
Our assessment: The cross remains firmly in a rising long-term trend, but the developing stock market correction might cause a deeper downturn, especially if oil turns lower again, and Asian economies continue to struggle.
