The New Zealand dollar had a sharp fall on Tuesday following the publication of the policy priorities of New Zealand’s incoming government leaders. After the coalition, the New Zealand Prime Minster elect Jacinda Ardern of the Labour party and New Zealand First party leader Winston Peters, - who will serve as deputy prime minister and foreign affairs minister in the new government – will introduce a bunch of new policies that will focus on environment, regional development and poverty. Moreover, other priorities they have are to review the Reserve Bank Act and ban foreign buyers from purchasing homes in the country, decreasing immigration up to 30K people a year.
NZD/USD Plummets Aggressively – Lost Almost 3% From Its Performance
The New Zealand dollar dropped 0.7% against the U.S. dollar since early this morning, while during the previous week the price plummeted almost 3%. The NZD/USD touched a new five-month low near 0.6908 and is approaching the next immediate support level at 0.6820. Moreover, the commodity currency pair plummeted more than 4% in October so far, following the bounce off the 0.7200 significant psychological level.
The technical structure suggests also the bearish attitude as the price is developing beneath the three simple moving averages (50, 100 and 200) on the weekly timeframe, as well as on the daily chart. The RSI indicator is sloping to the downside near the oversold zone and the MACD oscillator is strengthening its negative momentum.