We note that the Antipodean currencies are trading more closely to the China growth narrative, risk-off sentiment and drop in equities rather than the domestic story and recent price action reflects that. We don't expect any of these factors to show a reversal soon, which puts doubt on any significant rebound for NZD in the near-term, and we are biased to selling the NZD on rallies instead of chasing it lower as NZD is in oversold territory based on the RSI daily.

We like selling rallies near the 20-DMA at 0.61254 and target the 23.6% Fib level at 0.5785 judging by daily Fib levels over the past year. MACD divergence isn't showing any signs of a turn, and we think fundamentally, there is little going for the NZD.