By CountingPips.com
The New Zealand dollar declined against the US dollar in forex trading on Wednesday for a third consecutive day as the “kiwi dollar” fell to the lowest level since April 23rd. The NZD/USD started the week above the 0.8530 level and received some additional pressure over the past day from a rare central bank intervention in the currency markets by the Reserve Bank of New Zealand (RBNZ). The RBNZ intervened and sold kiwi dollars because the central bank feels the currency is overvalued against the other major currencies.
Other data out today showed that the New Zealand unemployment rate fell to a three-year low and surpassed economic forecasts for the first quarter of 2013. The unemployment rate registered 6.2 percent for the first quarter after a 6.8 percent reading for the fourth quarter of 2012. Economic forecasts expected the unemployment rate to stay steady at 6.8 percent.
Outlook: Support & Resistance
The NZD/USD currency pair traded right at the 0.8400 exchange rate on Wednesday at New York closing time. A close below the 0.8400 support level would indicate the bears are in control and we could look for more downside pressure. Next levels of support coming in are the 0.8350 exchange rate with the major support level at 0.8300 in line after that which has been a previous support and resistance level numerous times in recent months.
On the top side for resistance, we see 0.8450/65 as a level to watch and if we get above that, 0.8500 to 0.8535 could provide targeted resistance.
NZD/USD Changes & Ranges: Past 6 Weeks
| Date | Pct Change | True Range |
| 2013.03.31 | 0.88 | 0.0097 |
| 2013.04.07 | 2.08 | 0.0271 |
| 2013.04.14 | -1.77 | 0.0203 |
| 2013.04.21 | 0.94 | 0.0202 |
| 2013.04.28 | 0.57 | 0.0131 |
| *2013.05.05 | -0.97 | 0.0195 |
* current week
Written by Zac Storella, CountingPips Forex Blog & Currency Research
