NZD/USD soggy below the 0.72 handle, downside opened up by key data miss

Currently, NZD/USD is trading at 0.7189, down -0.08% on the day, having posted a daily high at 0.7197 and low at 0.7186.

NZD/USD has been soggy overnight after the recovery to 0.7218 the US high. The downside has expended below the 0.72 handle on the back of New Zealand business confidence (Q3) falling heavily in September at 5% from prior 18%, making, for an 18-month low ahead of the general elections. The analysts at Westpac explained that the bird remains vulnerable to a test of 0.7130 (end-Aug low).

Forex today: firm data signals supporting the case for a Fed hike in December

NZD/USD 1-3 month:  

Further out, 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.

NZD/USD levels

To the downside, closes below here opens 0.7127 as the June 6th low. 0.7100 is the key psychological level. The upside level at 0.7240 is a major 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. 

AUD/NZD: watching iron ore for a retest of 1.1200? - Westpac