NZD/USD bears seeking May lows at 0.6715

NZD/USD is currently trading at 0.6760 at time of writing while the bulls attempt to fend off the bears who took back control at the double top on the 12th May.

The Kiwi has come under pressure in a comeback in the greenback and a slide in risk sentiment with renewed fears for the global economy. In respect to New Zealand, a strong housing market raises uncertainty regarding a June cut by the RBNZ which could add some support to the bird.

"We retain our forecast the next cut will be in June, despite the housing market strengthening further. Low inflation, low interest rates, and rising asset prices is a global phenomenon which NZ cannot be divorce itself from," explained analysts at Westpac and added, "A failure to cut the OCR would strengthen the NZD vs other currencies and hurt the NZ economy - a worse fate than a heated housing market (which can be partly addressed by macroprudential restrictions)."

NZD/USD levels

The price is below the ma's on the hourly time frames with a target of 0.6715 and 9th May low having dropped below the rising channel support within the 20th Jan 2016 commencing rally. The downside is also underpinned by the 200 dma at 0.6795. A break there to the upside brings in the May high of 0.6847 and also 0.6858 as being 4th May low as strong resistance for a recovery back into the rising trend-channel.