NZD/USD drifting within the minor recovery on softer greenback

NZD/USD is currently consolidating after testing the resistance at 0.7265, a previous support of last weeks double bottom.

NZD/USD has been drifting higher and making some territory in a minor recovery on a pressured dollar from the lows of 0.7211after the sell-off subsequent follow though due to last week's combination of Yellen and Fischer speaking. Overnight, the US PCE data was not supportive of a rate hike in September. The bird found some strength on that.  The key events are now with China and the US jobs data at the end of the week.

"The combination of Friday’s plunge and Monday’s part retracement leaves NZD/USD in a neutral state on the day. A break below 0.7200 is required to give the bearish case confidence," explained analysts at Westpac and adding a longer term view, they said, "The RBNZ’s easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.70 by year end, although recent BOE and BOJ easing have made the NZD even more attractive to global investment flows such that a rise to the 0.75 area is possible first." 

NZD/USD levels

With spot trading at 0.7298, we can see next resistance ahead at 0.7302 (Daily Classic R3), 0.7306 (Yesterday's High), 0.7307 (Annual High), 0.7307 (YTD High) and 0.7324 (Daily High). Support below can be found at 0.7281 (Monthly High), 0.7281 (Weekly High), 0.7281 (Daily Open), 0.7276 (Daily Low) and 0.7265 (Daily Classic R2).