NZD/USD under pressure, hovering above three-week lows at 0.5955

• NZD/USD reversal from 0.6155 extends to three-week lows at 0.5955.
• The kiwi remains sold against a stronger dollar amid a downbeat market sentiment.
• Below the two-month channel, the 0.5800 level is exposed – Westpac.

The New Zealand dollar’s remains under pressure on Thursday, trading right above three-week lows, at 0.5955 after having broken below trendline support at 0.6015. The pair has lost nearly 2% against the US dollar so far this week and remains unable to return above the 0.6000 psychological level on Thursday.

The kiwi dives against a stronger dollar on a risk-off market

The NZD/USD accelerated its reversal from 0.6155 highs on Wednesday, weighed by a negative market mood, with the US dollar appreciating across the board after US Fed President Powell dismissed negative interest rates.

The pair broke below the support line of the last two months' upward trending channel and has extended losses on Thursday. Trump’s comments blaming China for the coronavirus spread and his support for a strong dollar have increased bullish pressure on the USD, pushing the kiwi to its lowest levels since late April.   

NZD/USD bearish, with 0.5800 on sight – Westpac

The FX analysts team at Westpac see the NZD bearish on the near-term, with the 0.5800 level exposed, “NZD/USD is testing the lower bound of a two-month-old channel. Should it break, a multi-week target of 0.5800 would be signalled.”