NZD/USD: offered below 200 sma on 1hr sticks

NZD/USD has continued on the offer in early Asia to start the week ahead of the FOMC as the main event for markets.

NZD/USD trades below the 1hr 200-sma at 0.7127 and is testing the downside of the ascending support line from the start of December's rally at 0.7041.

Just today, the front runner, Bill English, was confirmed as Prime Minister after John Key announced his resignation last week. Also, we had net migration for October that came in at 6240, from 6340 in October with wholesale sales +1% for Q3 vrs +1.7% prior seasonally adjusted.

NZD/USD levels

Analysts at Westpac explained the US dollar's extended rise recently has flipped NZD/USD momentum from positive to neutral, in a 0.7000-0.7200 range.

NZD/USD 1-3 month: "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead, not least because the Fed will probably hike in December. Against that, the NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook for NZD/USD, targeting sub-0.70," - analysts at Westpac offered.