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Kiwi suffers from Yuan devaluation

© Dukascopy Bank SA
"It's more monetary easing in Asia, theoretically it will decrease our competitiveness as well."
- ASB Bank (based on The New Zealand Herald)


Pair's Outlook 
The Kiwi's attempts to edge lower were completely nullified yesterday, as the weakened US Dollar made room for its New Zealand counterpart's rally. However, the tables have turned today, as the PBoC's action today has weakened all Asian currencies, including the NZ Dollar. As a result, the NZD/USD currency pair is likely to edge even lower than it attempted yesterday, thus, piercing through the two immediate supports. The NZ currency is expected to settle around 0.6540, while technical indicators are bolstering the possibility of a negative outcome. 

Traders' Sentiment 
Bulls and bears have reached a perfect equilibrium today, while the portion of orders to acquire the Kiwi decreased from 49 to 44%.
© Dukascopy Bank SA


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