NZD/USD oscillating around the 0.72 handle

NZD/USD is being pressured below the 0.72 handle in Tokyo at the start of this week. 

NZD/USD has traded around the 0.72 handle between a range of 0.7191 and 0.7222 the high. The markets are focused on economies and Central Banks again with one eye on politics. To kick start the busy week the New Zealand Institute of Economic Research (NZIER) has cut their outlook for growth for last and this year. However, and overall, their forecasts point to continued momentum in the New Zealand economy that has been underpinning strength in the bird this year so far. 

• "The latest NZIER Consensus Forecasts shows a modestly softer growth outlook in the near term compared to the last quarter’s release, but an upward revision from 2019. Overall, the forecasts point to continued momentum in the New Zealand economy." - NZIER
• "Inflation still expected to track around 2 percent over the medium term." - NZIER

NZD/USD levels

The bird broke 0.7150 key resistance recently although has struggled in the 0.7220's highs. Significantly, a break through of the 0.72 level with closes again this week would bring in prospects for a recovery back to test 0.7240/55 resistance. To the downside, 0.7145 and break back below 0.7080/90 as previous resistance. The Fed, US and NZ data later in the week could be catalysts for a break of the ranges this week. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.