NZD/USD falls toward 0.7000

NZD/USD broke below 0.7045 (Asian session lows) and dropped further reaching a fresh daily low at 0.7003. Currently it trades at 0.7012/16, down 1.15% for the day so far.

The US dollar started the week on a strong tone versus the kiwi after a weak economic data from China and a yuan devaluation and then extended gains amid risk aversion. US stocks printed fresh lows and now are trimming losses. The Dow Jones is falling 1.30% and the Nasdaq falls 2.10%. In Europe, main stocks indexes ended near the lows, with declines between 2 and 4%.

NZD/USD eyes Brexit referendum lows

On Friday, after the UK referendum NZD/USD tumbled an bottomed at 0.6972, the lowest level in a week. Then it attempted to recover but it was unable to hold above 0.7100.

If the pair falls below 0.7000 it could slide further to test last week lows at 0.6970/75; below support levels might be located at 0.6960 (June 3 high / June 15 & 16 high) and 0.6945 (June 8 low). On the opposite direction resistance could be seen at 0.7045 (Asian session low),  0.7065 (20-hour moving average) and 0.7125 (daily high).