NZD/USD drops to 7-week lows

NZD/USD accelerated the decline and turned sharply lower, breaking under September lows. The pair that earlier today reached price levels on top of 0.7300 bottomed at 0.7197. It quickly rose back above 0.7200 but remains under pressure. It was trading at 0.7200/10, down 80 pips from yesterday’s closing price, having the worst performance in three weeks. 

A combination of a stronger US dollar across the board and a weak Kiwi favored the downside in the pair. A drop in the GDT index earlier and now a decline in equity prices on Wall Street pushed the NZD/USD sharply to the downside. The weak NZD also boosted AUD/NZD that erased daily losses and rose above 1.0550, approaching last week highs. 

NZD/USD technical levels 

To the upside, resistance levels now might be seen at 0.7220 (Sep 23 & 26 low), 0.7255 (Oct 3 low) and 0.7270 (European session low). On the opposite direction, the 0.7200 handled could be considered as the immediate support, followed by 0.7165 (Aug 15 low) and 0.7110 (Aug 9 low).