The New Zealand dollar suffered badly from the global stock market crash but managed to recover. What’s next? The dairy auction and business confidence are the highlights. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.
The crash of stock markets hurt the “risk” sentiment and the kiwi was certainly a victim, especially as the economy depends on Chinese demand. NZD/USD crashed to the 0.62 handle before rebounding. An improvement in sentiment, led by Chinese stimulus and a potential delay of the Fed hike helped the kiwi recover. However, it was not enough to mitigate all the falls. A lower than expected trade deficit didn’t help much either.
Read the rest of the article NZD/USD Forecast Aug. 31 – Sep. 4