New Zealand Dollar At Risk On Growth Concerns
The NZD/USD falling below the 50-Day SMA at 0.6981 led me into a short position where I took profits at 0.6800. The pair is back testing the technical level and failure to break back above it, could lead me into a short position. A retracement of today’s gains below 0.6900 is where I will most likely target for an entry with a target of 0.6700. Risk appetite has shown signs of sustaining despite weaker fundamental data but ultimately growth concerns points toward more losses for the high yielder. However, I will caution not to get too bearish on the pair as the New Zealand economy is on solid footing and if markets begin to become uncorrelated the Kiwi could find support.
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