The kiwi’s struggle today is just the beginning
The NZD is the weakest performing major currency on the day
report earlier in the day, but it’s not exactly something that causes a major selloff in the currency despite the dip in the data.
AUD/NZD tested a support handle and is so far holding up, which in turn is helping to boost the aussie as well. AUD/USD is now up to 0.7792 from the lows of 0.7771.
Looking at the daily chart, the downside pressure looks like it’s just starting for the kiwi with no nearby support levels in the NZD/USD all the way down to the 38.2 retracement level @ 0.7187, which is nearby the 200-day MA (blue line) at 0.7184 as well.
Adding further woes to the kiwi is that the yen’s performance today makes for another key test to the downside for NZD/JPY. It sure does look like we will be heading back down to test the key support handle around the 76.00 region for the pair – which stemmed the bleeding earlier this month.
On that end, the aussie against the yen presents a very similar situation as well:
Those two charts will be ones to watch if risk sentiment continues to prop up the yen further next week. A break of the support levels will be massive.
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