The pair has been oversold last week as a result of the AUD news release and the NZD news last Wednesday. We can expect the pair to continue its bearish movement to lower lows near the 0.67 psychological area and the the 0.6650. The trend is supported by the 200 & 800 EMA. the pair is trading below the 0.50 fib so we can expect no retracement for the next week if it breaks also the 0.618 fib area near 67,20 .
Fundamentals:
In addition to the dismal data from New Zealand, headlines surrounding the U.S. - China trade conflict and the heavy commodity sell-off this week put additional weight on the NZD's shoulders. According to several news outlets, President Trump is not planning to meet his Chinese counterpart before the March 1 deadline, which revives the possibility of the U.S. continuing to impose tariffs on Chinese goods for a longer period than markets were hoping for.
-As China is both Australia and New Zealand’s biggest trading partner bad news between China-US are highly correlated with the pairs
New Zealand dollar is losing its shine as a "high-yielding" major currency, courtesy of dovish RBNZ expectations and the resulting drop in the bond yields.
The yield on the benchmark 10-year government bond yield slumped to a record low of 2.11 percent soon before press time.
New Zealand reported a weaker-than-expected employment numbers yesterday, triggering speculation the Reserve Bank of New Zealand might sound more open to rate cuts at its policy meeting, scheduled for Feb. 13.
Fundamentals:
In addition to the dismal data from New Zealand, headlines surrounding the U.S. - China trade conflict and the heavy commodity sell-off this week put additional weight on the NZD's shoulders. According to several news outlets, President Trump is not planning to meet his Chinese counterpart before the March 1 deadline, which revives the possibility of the U.S. continuing to impose tariffs on Chinese goods for a longer period than markets were hoping for.
-As China is both Australia and New Zealand’s biggest trading partner bad news between China-US are highly correlated with the pairs
New Zealand dollar is losing its shine as a "high-yielding" major currency, courtesy of dovish RBNZ expectations and the resulting drop in the bond yields.
The yield on the benchmark 10-year government bond yield slumped to a record low of 2.11 percent soon before press time.
New Zealand reported a weaker-than-expected employment numbers yesterday, triggering speculation the Reserve Bank of New Zealand might sound more open to rate cuts at its policy meeting, scheduled for Feb. 13.