New Zealand Dollar (NZD) has steadily plummeted day after day against the US Dollar after the incredible height of 12 February 2020. The NZDUSD was evaluated with the negative depreciation status, therefore its price today falls to less than 0.6500. This could happen due to New Zealand’s adverse facts which behaves as a core element in stimulating the currency of the NZD.

NewZealand hasn’t been updated with the good news this month, and it might be becoming the source of the currency not being valued. Below are the few recent highlights that could illuminate further in the NZD’s currency drop.

First, the participation rate, published by Statistics New Zealand, which is the percentage of the total number of people in the labor force age (15 years and over) who are in the labor force (either employed or looking for a job), who suffered from a decrease of 03 points, whereas it was expected that the last month index of 70.4 percent would remain the same.

Another disappointing indicator is from Global Dairy Trade’s GDT Price Index, released a couple of days ago, which dropped dramatically from 1.7% to -4.7%. GDT Price Indices are used to prevent manipulation of a simple weighted average price, and to provide a more accurate representation of price movements between trade events. This decline means NZD currency weakening further.

The NZDUSD is currently updating itself at a price of 0.6413. The variety of support levels at this stage is beneficial for the NZDUSD. Yet, on the other hand, there are different levels of resistance that might push the price to the further down, with the main horizontal resistance at 0.649, before the Fibonacci level is at 0.6544, and then a trendline resistance is at 0.6648.

Conclusion

While, as we observed its gradual decline from the graph above, since the beginning of the year the NZDUSD hasn’t publicly welcomed the traders.