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.