NZD/USD (current price: 0.7271)
The New Zealand Dollar followed the Aussie higher yesterday after Monday’s bullish Trade Balance data, but the currency is lower today in early trading, following the deterioration of global risk appetite this morning. The pair remains under the crucial 0.7350 level for now as it trades around the lower boundary of the advancing long-term trend channel, following a three-week long correction this month. The fundamentals are still mixed for the Kiwi, as the Asian economic worries continue to weigh on the export-heavy currency.
Our assessment: NZD/USD is still well clear of the 200-day MA, which is currently found at 0.6930, but the ongoing correction might still carry the pair lower to test the 0.72 support.
