NZD/USD declines further below 0.7200

NZD/USD continued to decline during the American session and printed fresh lows amid risk aversion. The pair reached a new daily low at 0.7142, extending to almost a hundred pips the decline from yesterday’s highs. On Monday it climbed to 0.7240, hitting the strongest level in a week, after erasing most of the post-Brexit referendum losses.

USD stronger in the market

The pair remains near the lows, under 0.7150 with the US dollar keeping a strong tone in the market as equity prices reached new lows. Main stock indexes in Wall Street are falling around 0.80%, moving with a clear bearish bias for the day.

The kiwi is among the worst performers so far during the American session. Greenback is higher against commodity currencies and the kiwi weakened particularity after a decline int he GDT price index of 0.4% at today’s auction.

NZD/USD technical levels

To the downside, support levels might be located at 0.7140/45 (June 30 high / daily low), 0.7095/7100 and 0.7055 (June 30 low). On the opposite direction, resistance could be located at 0.7190 (20-hour moving average), 0.7220 (European session high) and 0.7240 (July 4 high).