NZDJPY 4H bears waterfall..The global economic turmoil has impacted all countries, and New Zealand is no exception. As a result, the nation is experiencing slow growth, which is reflected in a weak NZD. China, one of New Zealand's largest trading partners, contributes to this issue. However, there was some improvement noted in the GDP for the March quarter, which rose by 0.2% compared to the previous quarter. Additionally, with inflation at 3.3%, the RBNZ is in a delicate position, attempting to manage inflation without hindering economic growth. Adjusting interest rates—whether cutting or raising them—will inevitably affect economic stability.
Typically, the JPY strengthens during times of global uncertainty, earning its reputation as a "safe haven." This trend may be contributing to the decline of the NZD, as risk aversion continues to influence the markets.
From a technical perspective, the price has experienced a significant drop from 91.654, resembling a free fall. The EMA (21) has effectively served as dynamic resistance. Currently (20:10 AEST), bulls are attempting to hold their ground, but I do not see any bullish momentum that could alter the price direction significantly. The new support level at 86.638 does not appear robust enough to withstand bearish pressure, although there may be some reaction since the RSI is just above the 30 level and poised to enter the oversold territory.
