The kiwi can't get off the floor
NZD/USD gives it all back
Watching the New Zealand dollar right now is like watching a drowning swimmer who won't grab onto the life preserver. Even a solid 'risk-on' day isn't helping.
The chart is a good example of the power of rate cuts. NZD/USD plunged then rebounded after the RBNZ cut rates on May 8 but now it's working back towards the lows.
Tellingly, the pair tried to rally today and hit 0.6582 but has given it all back and is at 0.6552, down 12 pips on the day and 8 pips from the session low.
The theme has been near-constant selling since the start of April.
Technically, the May and January lows are the spots to watch but I'm increasingly convinced that they're going to give way.