NZD/USD: ground-kiwi-day ... same feel as yesterday, between 0.7050 and 0.7100

Currently, NZD/USD is trading at 0.7074, up 0.07% on the day, having posted a daily high at 0.7077 and low at 0.7068.

AUD/USD: bears very stubborn at the 0.78 handle

NZD ranged sideways between 0.7057 and 0.7088 in the NY session with a better bid tone in the higher betas on improved risk sentiment and in an off-day for the greenback. The DXY ended the day lower by -0.4% while US 10yr treasury yields fell from 2.37% to 2.32% before steadying at 2.34%. 

NZD/USD 1 day: 

Analysts at Westpac explained to expect some consolidation between 0.7050 and 0.7100 following a 5% fall over the past month and a recent stall in the USD.

NZD/USD 1-3 month:  

"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on delivery of a Fed interest rate rise in December, then NZD/USD could fall to 0.70 by year-end," the strategists added as a longer-term outlook.

NZD/USD levels

The bird is now consolidating in the vicinity of 0.7055 as the June the 1st low ahead of a break of the psychological 0.7000 level. The Kiwi needs to get through 0.7240 as a major hurdle to confirm a significant correction of which a break of could open doors towards 0.7315.

"Until the political clouds clear, markets will trade nervously, and with a mild downside bias," explained analysts at ANZ, adding, "But even so, with the economy starting to show a few late-cycle wobbles and the RBNZ expected to be a reluctant participant in the global removal of monetary policy stimulus, any pop higher is something we would sell into." 

after the aforementioned 0.7315 level, 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.