NZD/USD steady on data release below a key resistance at 0.7240

Currently, NZD/USD is trading at 0.7230, down -0.06% on the day, having posted a daily high at 0.7239 and low at 0.7229.

NZD/USD is stable on the recent NZ data after a strong recovery in the US session when it closed higher by 0.51% at 0.7235. The data arrived as being New Zealand Building Permits s.a. (MoM): 10.2% (August) vs -0.7%.

Forex today: FX investors not so convinced and dollar takes a month-end hit

The US dollar has struggled today as FX markets juggle with how the tax cuts will be beneficial to the economy and dollar against the backdrop of dwindling confidence in the Fed and their ambitious dot plot between now and the end of 2018. The DXY gave background towards month end and the higher betas, such as Kiwi were supported by the VIX while small caps and the banking sector steamed on ahead after Trump's rally yesterday and tax cut announcements. 

NZD/USD 1-3 month outlook:  

The analysts at Westpac forward outlook is that if the RBNZ remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year-end. 

NZD/USD levels

The Kiwi is just shy of the 0.7240 hurdle of which a break of could open doors towards  0.7315.  0.7370 (the 9th Aug high) is the next key hurdle on the upside. A break there would solidify a bullish trend back towards 0.7522 and the YTD highs so long as there are closes on the 0.74 handle and beyond the post FOMC kneejerk highs of 0.7434. To the downside, a break back below 0.7200 and 0.7180 opens 0.7127 as the June 6th low. 0.7100 is the key psychological level.