The New Zealand dollar fell against the U.S. dollar as projected in the Forex Weekly Outlook.
The Fed’s hawkish comments during Tuesday’s testimony helped boost the U.S dollar outlook against emerging currencies but the unexpected slowdown in Chinese manufacturing PMI further weighed on New Zealand’s currency outlook as experts are projecting a slowdown in the Chinese economy in 2018, New Zealand largest trading partner.
The NZDUSD dropped 75 pips to close below 0.7267 key support level on Tuesday. Suggesting there are growing sellers on the pair, especially with slower than expected Chinese manufacturing growth report released on Wednesday.
Therefore, I will expect more sellers to jump on Kiwi sell in the near-term.
As projected, a sustained break of 0.7226 support levels should open up 0.7176, the lowest price level in 2018.