NZD/USD finally follows other commodity currencies and breaks out to the downside today. Overall risk-off sentiments overwhelm speculations of RBNZ rate hike. Technically, fall from 0.7463 is seen as a correction to whole up trend from 0.5467. Outlook will stay bearish as long as 0.7104 resistance holds. Next target is 100% projection of 0.7463 to 0.6942 from 0.7315 at 0.6794.
For now, we’d look for strong support around 38.2% retracement of 0.5467 to 0.7463 at 0.6701 to complete the correction. But we’ll keep monitoring downside momentum, as well as development in the risk markets closely, to reassess the outlook.
