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The NZD USD is under pressure overnight after a government report showed that May’s trade surplus was smaller than estimated. In addition, aftershocks are delaying the rebuilding of earthquake stricken Christchurch. This could delay the country’s economic recovery.
Both of these events are weakening the New Zealand currency at the start of the trading week. Pressure could continue on the Kiwi as traders adjust their positions in the wake of the possibility that a near-term interest rate hike is nearly impossible given the current deteriorating economic conditions.
Support could erode further if investors begin to shed risky assets ahead of the Greek austerity vote.
Technically, the main trend is down on the daily chart. A series of lower tops and lower bottoms are developing. The current downswing threatens to take out the last swing bottom at .7971. Currently, uptrending Gann angle support at .8055 could slow down the break; however, once this goes then look for an acceleration to the downside.
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