The kiwi is the worst performing major currency on the day
The NZD has been beaten down over the last two days and the RBNZ comments from this morning certainly didn't help with that regard - this comes despite the upbeat jobs report in early trading yesterday.
And that has seen NZD/USD fall to lows of 0.7181 on the day. The low tested the 38.2 retracement level at 0.7187 but has bounced back a little - now at 0.7193. For now, that's the support level that's holding up but sellers are in control of the pair.
Looking at the hourly chart, the jobs report helped sent the pair higher past the 200-hour MA momentarily, but since then buyers have failed to hold above the 200-hour MA as well as the 100-hour MA. And if something can't rally on good news, well you know. Compound that with the RBNZ comments this morning, it's not looking good for the kiwi.
Leveraged funds are believed to have also entered the picture, and that's not going to help give the kiwi any temporary reprieve. Even AUD/NZD has rallied back above the 200-day MA:
The low for AUD/NZD bounced off the 15 August low, and since then shorts are being covered quite a bit as the pair is now testing session highs at 1.0881.
