The NZ Dollar keeps weakening against its US counterpart as China’s economic performance is slowing down. Chinese companies report about a 5-6% income decline (y/y). This is the major reason for the weakness shown by NZDUSD.
According to Greg Gibbs, chief currency strategist for RBS, the NZ Dollar will get a chance to show strength only when the global economy starts showing signs of recovery. At the same time the continued eurozone debt crisis is escalating, which certainly affects China and its economy. This factor creates unfavorable conditions for economic stimulation. Therefore, the overall bias will remain bearish.
According to , the New Zealand Dollar keeps weakening against the US Dollar. The experts report that NZDUSD is forming wave А(С) or shortened С of wave level Н4 or higher.
A further downswing will probably meet support around 0.8035. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 0.8185 (as shown below).
