NZD/USD touches a low of 0.6732 on the day
Softer risk sentiment continues to weigh on risk assets and the kiwi is bearing the brunt of it in the currencies space. NZD/USD now falls to a low of 0.6732 and is down by almost 0.6% currently. The pair broke below the 200-day MA (blue line) in overnight trading and as buyers lose control of the upside momentum, we’re seeing an extension to the downside now.
Support is seen next at around 0.6726 before further support comes in at 0.6700-05. Thereafter, the 100-day MA (red line) lurks nearby at 0.6687.
After the currencies flash crash at the start of the year, the kiwi has recovered well but is starting to lose its upside momentum now as markets are starting to focus more on global growth worries and a further economic slowdown in China this year.
There isn’t much on the economic calendar today to really turn things around for risk and the kiwi but keep an eye out on the earnings calendar with Morgan Stanley and Netflix due to report their respective Q4 earnings later today.
The big one to watch out for will be Netflix but they will only report after the market closes. Nonetheless, the release will reverberate through to stocks in Asia and risk sentiment in general so just be wary.