NZD/USD dumped to 0.7165 on weak NZ data, lowest since June

The NZD/USD pair extended its bearish momentum into a second day today, having run into strong supply just ahead of 0.72 handle to hit fresh two-month lows of 0.7164 last minutes.

NZD/USD eyes on 200-DMA at 0.7154

The Kiwi failed to sustain its steady overnight recovery above 0.72 handle, as the bears fought back control amid downbeat NZ business confidence numbers. New Zealand business confidence declined slightly following July’s slightly softer result, coming in at 18.3 versus 19.4 last, while the ANZ Activity Outlook stood at 38.2 vs. 40.3 prior.

More so, resurgent US dollar demand, as the Asian traders cheer upbeat US Q2 GDP and ADP jobs data released a day before, also weighed heavily on the NZD/USD pair. The USD index extended its rebound to test 93 handle, up +0.16% on the day, having caught a fresh bid around 92.80 levels.

Meanwhile, the spot also remains pressured, in the wake of yesterday’s RBNZ Governor Wheeler’s currency jawboning. The RBNZ Governor Wheeler said during his speech that a lower NZD is needed to increase tradables inflation and help deliver balance growth.

However, upbeat Chinese manufacturing PMI data could offer some respite to the bulls, keeping the downside limited, with the 200-DMA at 0.7154 to also act as a strong support. Focus now shifts towards the US core PCE price index, personal spending and pending home sales data for fresh signals.

NZD/USD Levels to consider                                                                              

NZD/USD failed above 0.7200 (natural resistance), with 0.7154 (200-DMA) still guarding 0.7100 (200-DMA) and a break back below 0.7056 (June lows) are key near-term downside areas. To the topside, a test of 0.7243/50 (10-DMA/ psychological levels) due on the cards, which could open doors towards 0.7338 (50-DMA).