NZD/USD: headed for a close below 0.7200?

Currently, NZD/USD is trading at 0.7201, up 0.01% on the day, having posted a daily high at 0.7205 and low at 0.7198.

Key US data was strong overnight - ANZ

Commodities took a hit today, as did the Kiwi, in a continuation of the dollar's comeback. The 0.72 handle is under pressure and the score to 0.7189 was the lowest since 15th June earlier this year.  While the dollar rebounded, it remains down by over 9% while expectations for a December rate hike are still only at around 37%.

Forex today: start of the dollar's shorts capitulation?

NZD/USD 1-3 month: 

Analysts at Westpac argued that if the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end. "Pre-election jitters may also weigh on the NZD," noted the analysts at Westpac.

NZD/USD levels

0.7200/30 guards 0.7280/00 as the next key and initial resistance area ahead of the 0.7337 recent highs and 0.7370 (9th Aug high). To the downside, 0.7186, the June 15th low, along with the 50% of the move up from the 2017 low (May low) at 0.7187 is a key area of support ahead of 0.7150 June 5 high; The daily cloud base is located at 0.7139 and 0.7127 is the June 6 low and 0.7100.