NZD/USD: better offered here, although don't rule out 0.7500

NZD/USD is currently consolidating the strength in the greenback that came of last week's closing U.S. session, sending the bird down from 0.7310 and to the mid-way point of the 0.75 handle. 

NZD/USD could continue to be pressured in thin markets today on the back of the market's shift into dollars after last week's August CPI that rose by 0.2% while the core monthly figure rose by 0.3%. However, the NZ Q3 consumer confidence has offered minimal support in early Asia, beating expectations of 106 and arriving at 108.  For the week ahead, focus turns to the FOMC as the main driver. 

NZD/USD levels

Further out and during the month ahead, analysts at Westpac expect another probe above 0.75 is possible, "Driven by good NZ economic news, a still-vulnerable US dollar, and yield-chasing inflows. By year end, there’s a case for a correction towards 0.70 if the Fed tightens in December as we expect. (13 Sep)."  Meanwhile, the price is below the 200 sma on the 4hr sticks that resides at 0.7269 and late July's ascending support from 0.6950. A break of 0.7240/30 opens a test of the 0.7200 support ahead of 14th August lows of 0.7164 and 7th August lows of 0.7084.