The Kiwi is pushing lower today as the RBNZ are sounding worried about the state of the global economy.

RBNZ Governor Orr was speaking today and hit out at comments suggesting that they were overstepping the mark and diving into other areas including fiscal policy. When in reality they are best served working with monetary policy.

Orr also put the blame for the latest round of rate cuts, where the RBNZ wiped off 50bp in a stunning cut, solely at the feet of the global economy. Which is dragging economies down world wide.

But he also said that monetary policy was effective as ever and interest rate cuts will stoke both growth and inflation. Which is their primary objective.

Regardless of the headlines, the NZD/USD is down sharply today and is the weakest of the majors in early Asian trade. Currently, price is down around -0.2%.

0.6425 looks a really important support level to me at this stage. It is clear that the sellers are in control and almost walking price down at the moment.

We are making lower highs and the big resistance level at 0.6500 is very strong. So if we break the lows here, the door is open for another leg lower.

A good play here will be to short the Kiwi on the net risk-off day. It is always a good plan to short the weakest and buy the strongest, in any market. So for me, the Kiwi is the leader of the weak currencies today.

We did also see a small miss in some manufacturing data, which was only third-tier at best, but it could be adding to the selling pressure. But it was the first contraction that we’ve seen in over 5-years.