NZD/USD (current price: 0.7151)
The New Zealand Dollar followed the Aussie higher in early trading but it drifted lower throughout the day after that, as the decline in commodity prices, and the continued correction in global stocks weighed on the currency. The pair continues to trade below the 0.72 level, despite the weak bounce this week after hitting a more than 1-year high near 0.75 in September. The Kiwi declined again this morning as the New Zealand Trade Balance came in below expectations, with a deficit of -1.436 billion.
Our assessment: NZD/USD still trades in a short-term correction within an advancing long-term channel, as Asian worries and U.S. rate hike expectations weigh heavily in the pair.
