FXStreet (Bali) - The NZ Dollar, once the darling of the FX market, has seen some nasty moves against buyer's interest in the early hours of a very thin Asian session, taking the currency over 50-60 pips lower, mainly via AUD/NZD heavy buying.

The AUD/NZD made a quick trip north towards 1.1160 after breaking the 1.11 round number, with buyers exploiting a void area until around 1.1180-1200. NZD/USD was hammered towards fresh lows, touching its cheapest level since Feb 27 this year, at 0.8337.

Sentiment-wise, the NZD has been one of the worst performing currencies in recent month, together with the Japanese Yen and the British Pound, as market participants shift interest towards the US Dollar and to a lower degree the Australian currency, which continues to show a resilient performance. Growth downgrades in New Zealand, coupled with lower rate hike expectations by the RBNZ this year, a decline in NZ economic readings, and specs exiting long-held longs is hurting the once beloved Kiwi Dollar.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!