NZD/USD: Down in the dumps, ignores solid Q3 GDP

By FXStreet FXStreet (Mumbai) – NZD/USD erased FOMC-induced gains and fell sharply lower after the bulls were left unimpressed by NZ Q3 GDP data, knocking-off the pair towards 10-DMA at 0.6725.

NZD/USD heading towards post-FOMC lows?

Currently, the NZD/USD pair trades -0.84% lower at 0.6743, testing lows struck at 0.6731. The Kiwi reverted to the red zone and remains relentlessly offered as the upbeat Q3 GDP numbers failed to reverse RBNZ further rate cut bets. The New Zealand economy expanded 0.9% in the September quarter against forecast for a 0.8% expansion.

Analysts at Westpac noted, “We caution that solid GDP growth needs to be seen in the context of very strong population growth. The pace of GDP growth has slowed in per capita terms, and low inflation and rising unemployment indicate that the economy has been operating with increasing spare capacity.”

Moreover, the US dollar remains broadly higher,
responding to the overnight rate hike decision by the Fed, and thus, adds to further downside in the Kiwi. The USD index rallies 0.48% to 98.87 levels.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6800 (round number), above which it could extend gains to 0.6831 (Dec 15 High) levels. To the downside immediate …read more

Source:: FX Street