New Zealand dollar continues downward pressure on Friday

The New Zealand dollar was a bit noisy during the trading session on Friday, as we continue to test lower lows. This of course is a very negative sign and could keep the Kiwi dollar on the back foot. I believe that the market will continue to offer selling opportunities on short-term rallies, especially near the 0.7075 level. I believe that the market could continue to go down to the 0.70 level next, which of course is a large, round, psychologically significant number. Overall, I believe that if the risk appetite continues to be an issue, then of course the New Zealand dollar will fall. Beyond that, we also have rising interest rates in the United States, which of course has the same effect on this pair. I believe that the 10-year treasury markets will continue to be followed by most traders, and I think that as interest rates rise, that should continue to put a lot of bearish pressure in this market.

In general, I like the idea of trying to break down below the 0.70 level, reaching down to the 0.68 level. That is the bottom of the overall consolidation that has been a major factor in this market for several months. I think that the market will respect that area, because quite frankly, if we break down below there it would be a major unwinding of global markets in general as it would show a massive concern when it comes to risk appetite. Currently, the US dollar is the strongest currency that I follow.