NZD/USD chart - Trading View
NZD/USD was trading 1.02% lower on the day at 0.6944 at around 06:10 GMT.
The kiwi was hammered on Tuesday as reports emerged of community COVID-19 spread in Auckland.
New Zealand has seen relative success in combating the covid spread, and the reports of Covid case despite the closure of the borders still in place, spooks investors.
The reports have poured cold water on the RBNZ rate hike expectations of a 50 bps on Wednesday.
Markets had priced in the rate hike from the RBNZ and hence the report of Covid spread is weighing down the kiwi.
Technical picture is also supportive of the downside. Upside had been capped at stiff resistance at 55-EMA and 21-week EMA.
Focus on US Retail Sales, FOMC minutes and RBNZ policy meet for further impetus.
Death Cross on the daily charts keeps scope for downside. The pair is now on track to test trendline support at 0.69. Break below will see further downside.
