NZD/USD Dives on S&P Outlook Revision

NZD/USD dropped 4% after Standard & Poor revised it’s currency credit rating from ‘stable’ to ‘negative’.

The New Zealand dollar’s base interest rate of 5% makes it a popular carry trade currency. It is also regarded as a commodity currency, known for it’s close correlation to gold.

As the daily chart shows, NZD/USD retraced 50% from it’s recent low, where a double bottom in the 0.5194 area forms support.

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