Kiwi Slides Against Dollar Amid Fed Rate Hike

The New Zealand dollar weakened against the US dollar on Friday, falling by 0.11% to trade at 0.5725.

This move followed a week in which the Federal Reserve delivered its first rate hike in three years, supporting the greenback against most G8 FX peers.

According to technical analysis, the Relative Strength Index is close to oversold for the second time in September, indicating that sellers are firmly in control of the market.

A break below 0.5700 support level would bring the 8 July low at 0.5671 into view, followed by the year-to-date trough of 0.5626.

Fundamental pressures also played a role, with New Zealand's export reliance on China facing challenges due to a cooling Chinese economy and declining dairy auction prices.