NZD/USD: better bid in early Asia, propped by Fed's Dudley crossing wires and less hawkish

Currently, NZD/USD is trading at 0.7237, up 0.07% on the day, having posted a daily high at 0.7240 and low at 0.7228.

NZD/USD is better bid in the early hours of the Asian session, following on from a positive shift in the US with a weak dollar across the board. NZ data today for Q2 manufacturing activity was +3.9% q/q vs prior +3.1% and revised from +2.8eanwhile, Fed's Dudley has crossed the wire and says that he still expects US monetary policy to continue to tighten gradually. However, he is definitely sounding less hawkish than previous and hasn't said that he expects a rate hike this year this time around. 

Forex today: dollar -0.81% on market's incrementing bearish outlook

Analysts at ANZ explained that the Yield differentials say that this cross should have a six in front of it. "That has been usurped by USD political and policy challenges. However, now it’s the NZD’s turn, as local election uncertainty rises. It’s not enough to send the NZD materially lower, but enough to keep topside moves capped. We continue to favour fading strength," added the analysts at ANZ.

NZD/USD levels

To the upside, 0.7240, 0.7280 and 0.7300 are the next key and initial resistances before 0.7337 recent highs and 0.7370 (9th Aug high). To the downside, 0.7220 guards 0.7195 as the recent low ahead of the daily cloud base that is located at 0.7139. 0.7127 is the June 6 low and 0.7100 is a key psychological level.