NZD/USD consolidating post break above 0.73 the figure

Currently, NZD/USD is trading at 0.7290, up 0.03% on the day, having posted a daily high at 0.7292 and low at 0.7280.

NZD/USD has settled into a consolidation supported by 0.7280 after hitting overnight highs of 0.7320 in the US session.

There was no outright catalyst for the bid int he bird, but it remains inside a 0.72-0.7320 range, commensurate with the US dollar’s recent rebound stalling, overlaid with some election-poll related volatility as analysts at Westpac noted. The main takeaway from overnight trade was that US bond yields rose due to the affirmation by the US Treasury Secretary that some tax reform will be achieved this year, and in part due to an improvement in risk sentiment. 

NZD/USD 1-3 month: 

Longer term, the analysts argue 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," the analysts explained. 

NZD/USD levels

To the upside, and a break of 0.7320, 0.7337 recent highs and 0.7370 (9th Aug high) are next targets in the near term. To the downside, below 0.7280 opens 0.7220 that 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.