NZD/USD (current price: 0.7150)
The New Zealand Dollar is still trading in a short-term downtrend, as the weakness in Asian economies, especially China, continues to put pressure on the export-oriented economy of the country. The recent slump in the Chinese Yuan caused a decline in the Kiwi as well, although yesterday’s rebound in global stocks contributes to the bounce I theof the currency this morning. The pair is back below the all-important 0.72 level, with strong support below the current rate within the 0.70-0.7050 interval.
Our assessment: NZD/USD is still trading in an advancing long-term trend despite the current correction, with the rising 200-day MA found at 0.6960, providing additional support.
