New Zealand dollar down nearly 2%
The kiwi is on pace for its lowest close since 2009. The drop in NZD was prompted by broader commodity worries and US dollar gains.
The pair stabilized last week after falling as much as 8% and then recovering two-things of the losses. The inability to rebound further alongside stocks, commodities and recovering sentiment was a warning sign and now NZD/USD is under heavy pressure.
The pair stumbled early today after soft ANZ business confidence but then traded sideways around 0.6415 until US traders arrived. Since then, it's turned sharply lower and just hit a session low of 0.6325.
ANZ warned in the report that "economic activity has fallen to a three-year low, with the economy approaching 'stall speed.'" They also noted that several components of the report were at the lowest since 2009.
Technical analysis
This could get much worse. If we look at the entire scope of the 2009-2014 rally, we've now given back more than 61.8% of the gains.
