FXStreet (Mumbai) - The New Zealand dollar remained bearish on Monday, accelerating further to the downside heading into the US opening bells, as persisting worries over Chinese economic performance, weak NZ fundamentals and tumbling oil prices continue to dampen the sentiment around the Kiwi.
NZD/USD drops from 0.6488
Currently, the NZD/USD pair nearly 1% lower at 0.6399, having struck fresh weekly lows at 0.6393 levels some minutes ago. The New Zealand dollar extends losses versus its American counterpart as falling global equities and oil prices on China fears added to the downside bias.
At the moment, Brent crude trades over 2% lower below $ 49 while WTI futures drop nearly 1.80% to trade below $ 45. Gold prices also slip-0.13% to trade below $ 1132.
The Kiwi also remains pressured after the NZ treasury downgraded GDP forecasts in the June quarter to be around 0.6%, lower than the BEFU forecast, while annual growth in 2015 may fall to 2.0% on softening domestic demand.
Looking ahead, the NZD/USD pair will be influenced by the US Chicago PMI data which may have further impact on the USD moves. While commodity price actions will also be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6468 (Today’s High) levels and above which it could extend gains 0.6517 (Aug 26 High) levels. To the downside immediate support might be located at 0.6300 below that at 0.6244 (Aug 24 Low).
