NZD/USD: looking for closes in this territory, eyes on 0.73 handle and YTD highs

Currently, NZD/USD is trading at 0.7206, down -0.10% on the day, having posted a daily high at 0.7215 and low at 0.7171.

US Dollar struggles to build on Friday's gains, floats above 97

NZD/USD is consolidating at a key technical level at the low while the greenback is weak across the board on a risk off start to the week ahead of Central banks and key data. All in all, NZD/USD' uptrend remains intact ahead of the Fed decision and NZ GDP.

NZD/USD has been underpinning of late by positive sentiment in the NZ economy while at the same time, there have been doubts over the US's recovery despite the hype built up around the Fed hiking rates this year. The concerns around inflation targets and GDP along with headwinds and a fragile political environment are driving concerns around the US economy pressuring yields lower.

"The Fed is unlikely to deliver a hawkish surprise to the USD market. A hike is 100% priced; jobs, inflation and wage data have all surprised on the downside lately," explained analysts at Westpac, adding that influential Fed insiders such as Brainard mused that persistently low inflation could lead to a reassessment of the Fed’s path." 

NZD/USD levels

The bird broke 0.7150/69 key resistance recently but remains capped by the 0.7220's highs. Closes on the 0.72 level holds the key for further bullish attempts with eyes on the 0.7240/55 resistance area first off. To the downside, 0.7145 and a break back below 0.7080/90 are key near-term downside areas. 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.