NZD/USD (current price: 0.7102)
The New Zealand Dollar declined sharply in the second half of the week. The broad Dollar rally weighed heavily on the Kiwi. The strong decline in the Chinese Yuan also put pressure on the pair, because of the strong trade connections between the two countries. The slightly dovish statement by the RBNZ on Wednesday also added to the decline of the cross.NZD/USD is now trading close to the 0.70 level again, after falling more than 4% since Mr. Trump’s victory.
Our assessment: NZD/USD is still well above the 200-day Moving Average, despite the strong decline last week. The pair is still trading in a long-term range between, 0.695 and 0.735.
