The New Zealand dollar softens as risk appetite continues to subside. A bearish MA cross on the daily chart points to an acceleration to the downside. A short-lived bounce to 0.6190 indicates strong headwinds. The bulls would need to reclaim 0.6250 before a sustained recovery could materialise. Otherwise, 0.6060 at July’s low is a critical floor and its breach could trigger a bearish continuation, sending the pair towards the psychological level of 0.6000. 0.6110 is the first resistance where trend followers may look to sell.
