The New Zealand dollar falls on Tuesday

The New Zealand dollar initially tried to rally on Tuesday but found the 0.7350 level to be a bit too resistive. Because of this, the market rolled over and it looks like we are going to continue to go a bit lower in the short term, perhaps trying to find a bit of value after the initial move higher last week. I think that the market so as plenty of support below though, especially near the 0.7250 level. It’s not until we break down below that level that I would be concerned, so I think that if you are patient enough, you should get some type of buying opportunity based upon value and a bounce at lower levels.

The 0.74 level above would be a target as well, and if we can break above that level I think that the market could go to the 0.75 level. Expect noisy trading conditions, so I would suggest using a smaller position, but it seems as if the New Zealand dollar is going to be bullish overall. It obviously is sensitive to risk appetite, so keep an eye on headlines coming out of Syria and any potential trade war between the United States and China, as it will have a major effect on New Zealand exports to Asia. All things being equal though, I think we will continue to see buyers, and I am looking at this as a market that could offer a bit of value in the short term.