NZD/USD: awaits US catalysts this week, corrected 60% of 0.6980/50 rally

Currently, NZD/USD is trading at 0.7013, down -0.04% on the day, having posted a daily high at 0.7020 and low at 0.7012.

NZD/USD is sidelined in early Asia having filled the bullish French election gap and moving to demand at the 200 ema on the hourly sticks at 0.7010 and key support.

US data previewed: start of a busy week - Nomura

While the day was subdued overnight in the consolidation of the start of the week gaps and without any US data, eyes look ahead to durable goods and the first estimates for Q1 GDP at the end of the week. The NZ trade balance will also feature but will be potentially taking a back seat with the main focus on Trump's plans for tax reform following last week's promises. At the same time, Congress will be meeting to discuss the debt ceiling that could pose a risk to financial markets if the Democrats and Republicans can't find a middle ground on various policies. Meanwhile, the  Fed and RBNZ with the Fed’s tightening cycle remaining as a key focus should maintain upside pressure on US interest rates and the US dollar.

NZD/USD levels

While consolidated at the midpoint fo the 20th April rally to 0.7050, the 200 ema on the hourly sticks is a key support just ahead of the 0.7000 psychological level that guards space to 0.6933/50. A break of the 0.69 handle opens up the 0.6885 mark as being the recent lows guarding 0.6675 as the 29th May 2016 on a break of the 0.67 handle. Bulls have the 17th April highs of 0.7035 is sight protecting 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows.