The New Zealand Dollar is trading lower for a second session as investors continue to react to the weak growth report released earlier in the week. A stronger U.S. Dollar is also weighing on the Kiwi, but steady demand for risky assets and a dip in 10-year U.S. Treasury yields may be helping to underpin the currency.
At 03:41 GMT, the NZD/USD is trading at .6422, down 0.0006 or -0.09%.
New Zealand’s gross domestic product suffered its biggest fall since 1991 as the coronavirus pandemic began to bite in the first quarter.
Gross domestic product fell 1.6 percent from the fourth quarter, Statistics New Zealand said on Thursday in Wellington. Economists expected GDP would shrink 1 percent. From a year earlier, the economy fell 0.2 percent – the first annual contraction since 2009.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart; however, momentum is trending lower. The main trend will change to down on a trade through .6381. A move through .6585 will signal a resumption of the uptrend.
The minor trend is down. This is controlling the downside momentum. A trade through .6507 will change the minor trend to up. This will shift momentum to the upside.
The short-term range is .6585 to .6381. Its retracement zone at .6483 to .6507 is potential resistance.
The main range is .5921 to .6585. If the trend changes to down, then its retracement zone at .6253 to .6175 will become the primary downside target.
Daily Swing Chart Technical Forecast
The early downside momentum on Friday indicates sellers have their eyes set on the main bottom at .6381. A trade through this level will change the main trend to down. This could trigger an acceleration to the downside with the main 50% level at .6253 the next likely downside target.
If momentum reverses to the upside then look for renewed selling pressure on a retest of the short-term retracement zone at .6483 to .6507.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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