The kiwi remains on the skids; it is feeling the pinch of softer commodities, weaker Asian equities and higher US yields. Failure to hold the 0.6775 opens the door to further weakness, according to economists at ANZ Bank.
Markets remain very skittish and more volatility seems likely
“The drivers appear to be softer commodity prices, late weakness in US equities, and Chinese economic growth concerns, all of which has knocked the AUD too. So, the week hasn’t gotten off to a good start for the kiwi, and although there is some domestic data coming up this week (which should be pretty good and which we think might be more influential) global events continue to dominate sentiment.”
“Technically, the break of 0.6775 doesn’t bode well, and the sharp rise in US bond yields might keep the USD bid.”
“Markets remain very skittish and more volatility seems likely.”
“Support 0.6540/0.6715 Resistance 0.6875/0.6995/0.7105”