The New Zealand dollar was hit from both sides late last week: a ratings
downgrade from S&P and Fitch and a sell-off in global stock markets
(NZD/USD being the most sensitive to "Risk on/Risk off" among the
actively traded crosses).
The downgrade was not a surprise as the "Kiwi" had been on negative watch for some time and the immediate market response was muted. But in combination with a generally nervous tone in global markets, downside pressure looks likely to predominate over the next few weeks.
From a technical perspective my Bearish Outlook in NZD/USD persists and the expectation now is for a sell-off toward my next Target about the 0.7490 level, with longer term risk still toward my Medium Term Objective of 0.7080, over coming weeks.
The downgrade was not a surprise as the "Kiwi" had been on negative watch for some time and the immediate market response was muted. But in combination with a generally nervous tone in global markets, downside pressure looks likely to predominate over the next few weeks.
From a technical perspective my Bearish Outlook in NZD/USD persists and the expectation now is for a sell-off toward my next Target about the 0.7490 level, with longer term risk still toward my Medium Term Objective of 0.7080, over coming weeks.
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