NZD/USD: below 0.73 handle sitting awaiting next key catalysts

Currently, NZD/USD is trading at 0.7289, down -0.01% on the day, having posted a daily high at 0.7293 and low at 0.7281.

NZD/USD has been isolated to below the 0.73 handle on a very quiet overnight and early Asian session. There was very little in the way of a catalyst with it being the US 4th July Independence Day holidays. However, the Milk auction was released in the GDT Price Index overnight. Analysts at ANZ noted that last night’s dairy auction was generally positive, especially the 2.6% lift for WMP giving the Kiwi a boost. We now turn to ANZ Commodity Price and Caixin China Services PMI for today's Asian session and FOMc minutes in the US. 

Eyes turn to FOMC minutes

"The FOMC minutes will be scrutinised for details to give a better sense of the extent of the cautiousness expressed by at least one Governor and a few regional presidents in light of the decline in price pressures in recent months," explained analysts at Brown Brothers Harriman.

"We suggest that the most likely scenario is for the Fed to announce in September plans to begin not rolling over the full maturing issues in October, and waiting for confirmation that inflation remains on course until the December meeting," added the analysts.

NZD/USD levels

NZD/USD's recent high has been 0.7344 earlier this month. However. the price is just shy of 0.7374 being the high for 2017. To the downside, 0.7250 area guards 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.