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24 Feb 2015
NZD/USD extends losses below 0.7500 after NZ inflation expectations ease
FXStreet (Mumbai) - The New Zealand dollar accelerated losses below 0.7500 against its US counterpart in mid-Asian session, extending its downslide on RBNZ’s low inflation projections reflecting the recent slump in oil prices.
NZD/USD declines from 0.7503 levels
Currently, the NZD/USD pair sinks by -0.67% on the day at 0.7474, having previously posted fresh six day lows at 0.7469 levels. NZD/USD fell further in red as expectations of lower price pressures in Q4 2014, increased bets for a rate cut by the RBNZ this year. Moreover, the RBNZ shifted its interest-rate hiking bias to a neutral stance in its January meeting adds to the ongoing rate cut speculations.
NZD/USD is likely to remain pressured ahead of Fed Chair Yellen’s testimony due later in the day for further hints on the future course of Fed’s monetary policy path, which is expected to keep the US dollar underpinned.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7508 (10-DMA) levels and above which it could extend gains to 0.7562 (50-DMA) levels. To the downside immediate support might be located at 0.7441 (20-DMA) levels below that at 0.7406 levels.
NZD/USD declines from 0.7503 levels
Currently, the NZD/USD pair sinks by -0.67% on the day at 0.7474, having previously posted fresh six day lows at 0.7469 levels. NZD/USD fell further in red as expectations of lower price pressures in Q4 2014, increased bets for a rate cut by the RBNZ this year. Moreover, the RBNZ shifted its interest-rate hiking bias to a neutral stance in its January meeting adds to the ongoing rate cut speculations.
NZD/USD is likely to remain pressured ahead of Fed Chair Yellen’s testimony due later in the day for further hints on the future course of Fed’s monetary policy path, which is expected to keep the US dollar underpinned.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7508 (10-DMA) levels and above which it could extend gains to 0.7562 (50-DMA) levels. To the downside immediate support might be located at 0.7441 (20-DMA) levels below that at 0.7406 levels.