The NZD was the weakest performing major currency in yesterday's trading
The bleeding continues for the kiwi, as it fell 0.71% against the dollar in yesterday's trading. The decline in the last two weeks have seen NZD/USD erase all gains for the year, and the pair is now down 0.86% on the year.
At the moment, the pair is leaning against the 61.8 retracement level @ 0.7032 - with the lows of the day testing said support level. The range for the day is tight still, so expect a little bit of an extension later in the day.
European markets are mostly off today as well with UK being the only major market open later in European trading. So, don't expect large moves today - though sometimes in thin liquidity conditions funny things do happen.
But at this stage, 0.7000 looks a question of when that if. It seems inevitable at this point. That will be where the next key test for the pair lies - especially from a psychological standpoint. A move below that will see a move towards a test of the 76.4/23.6 retracement level @ 0.6936 next.
The nosedive in the pair on the chart is a real ugly one. Sort of reminds me of this. :)
