NZD/USD slides further toward 0.7300

NZD/USD is falling considerably for the second day in a row and it erased most of the week gains. The pair that yesterday was trading near 0.7500 is now looking at 0.7300.

A stronger USD

The dollar is rising sharply across the board amid risk aversion and rising market odds for a rate hike from the Federal Reserve during 2016, particularly after Fed’s Rosengren comments.

The stronger US dollar pushed the NZD/USD pair further to the downside, extending the correction that started on Thursday. After the beginning of the American session bottomed at 0.7313, reaching the lowest since Tuesday.

At the moment of writing the pair was trading at 0.7320/25, down 1.0% for the day, having the worst performance in a month.

Technical levels

To the downside, support is located 0.7300 (psychological) and 0.7265/70 (Sept 02 low). On the opposite direction, resistance could be seen at  0.7350 (short-term downtrend line),0.7380/85 (Sept 08 low) and 0.7410/15 (daily high).