NZDUSD Technical Analysis – The negative sentiment doesn’t help the Kiwi ...Middle East

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NZDUSD Technical Analysis – The negative sentiment doesn’t help the Kiwi
Fundamental OverviewThe weak US NFP report last Friday led to a key breakout in the USDJPY pair which eventually triggered another deleveraging in the Yen carry trades. Things got dire yesterday as the Nikkei dropped 12% overnight and we saw a general selloff in global stock markets. This led to risk-off flows and at one point, the markets saw the Fed cutting rates by 136 bps by year-end and some chances of an emergency rate cut. Although the volatility calmed down a bit, the markets are still expecting a 50 bps cut by the Fed in September and a total of 110 bps by year-end. The NZD got pressured by the risk-off sentiment but bounced back pretty quickly erasing all the losses since last Frid

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