Forex Trading News – New quake weighs on Kiwi

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A 5.5 magnitude earthquake early in the morning rattled Christchurch New Zealand. Four months ago the city was shocked by a 6.3 magnitude quake which caused the life to 181 people and caused millions of damages across the city and the region of Canterbury. The earthquake struck approximately at 13:00 local time (01:00 GMT) and people evacuated buildings in state of panic, as the memories from the February disaster are still fresh; no direct fatalities have been reported so far. The earthquake and its aftershocks will definitely delay the rebuilding of Christchurch. The New Zealand Dollar has lost so far in the day some 97 pips to hit a ten days low of 0.8116 against its US counterpart. Last Thursday the NZDUSD pair has touched a 26 year peak of 0.8300. However, it is unlike to observe these levels soon since the pair has slipped below the key support level of 0.8175 and markets do not see such heights as sustainable for the Kiwi. Furthermore the RBNZ most probably will not proceed to another rate hike this year despite the forecasts of a 68 basis points raise by the end of 2011. Currently the pair is struggling to depreciate the losses from the earthquake, it is now trading at 0, 8135, slightly above the ten days trough.