NZD/USD: consolidating, bulls relieved on market's reaction to US tax reform announcements

Currently, NZD/USD is trading at 0.6895, up 0.06% on the day, having posted a daily high at 0.6898 and low at 0.6888.

• Forex today: you can't get much more political in FX as that, dollar gets whacked

The kiwi was offered right down to below the 0.69 handle to 0.6871 lows before attempts back to 0.6900 after the tax announcements from Trump's administration in the US session. Analysts at Westpac explained that last night’s break below 0.6890 and if sustained today, paves the way to 0.6860 (Dec low) initially.

NZD/USD 1-3 month:  

Further out, the analysts explained that the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down towards 0.6900. "The RBNZ’s persistent reminders it is on hold for a long time should also weigh."

NZD/USD levels

NZD/USD has broken the critical support level at 0.6933/50 and has challenged the support of the 0.6885 mark down to 0.6871 as being the recent previous. Next support is down to 0.6675 as the 29th May 2016 high on a break of the 0.67 handle. On the flip side, a run back on t the 0.70 handle, the previous bulls have the 17th April highs of 0.7035 is sight protecting 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows.