Like the Australian Dollar investors, New Zealand traders are concerned about the possible negative effect a cut in stimulus by China will have on exports and the growing economy.
Without any solid evidence to support this speculation, traders are paring their positions in anticipation of the worst.
A positive comment by a Reserve Bank of New Zealand official earlier in the week is currently limiting losses. This official hinted that the RBNZ may raise interest rates sooner than expected.
The chart indicates that this market is in a position to post a minor top, but still far from changing the main trend to down. A daily or weekly closing price reversal will be the best sign a major top is forming.