Forex: NZD/USD below key support at 0.8160

FXstreet.com (Barcelona) - NZDUSD is last at 0.8147 bids, off session and 11-day lows at 0.8139, after falling in 2 days a -2.04%, from peak to bottom, same amount it took 9 days to get to the upside. Much worse than expected yesterday's jobs figures in NZ triggered a cascade in selling orders that blew all support barriers out in no time.

Now the talk goes for an upcoming rate cut from the RBNZ, although finance minister has commented it wont happen before next year, and only if economic conditions keep on deteriorating, sources say. Given ascending risk-off environment surrounding in equity markets, with SP500 losing -4% in last 2 trading days making US bonds surging, today's China CPI data at 01:30 GMT will capture traders attention looking for more easing hints coming from the Asian giant.

To the downside, and according to Fan Yang, CMT at FXTimes, "There are going to be some support factors around 0.81," the analyst says, adding: "Breaking below 0.8075 will clear a rising trendline, previous support pivot and the 200-day SMA. The 0.80-0.8008, 38.2% retracement level appears to be the first near-term target for the bearish outlook," Mr Yang concludes.

To the upside, immediate resistance shows at yesterday's first low post-data and Sept 24/26 lows around the 0.8180 level.