NZD/USD: in a minor recovery awaiting key risk events on 0.74 handle

Currently, NZD/USD is trading at 0.7418, up 0.02% on the day, having posted a daily high at 0.7426 and low at 0.7415.

NZD/USD has recovered out of the short term bearish drift on the five-minute sticks with little reaction to the NZ trade balance for June that arrived in NZD terms of 242m vs the expected 150m surplus. Early signs of a possible top ahead of 0.7485 (Sep 16 peak) is where Westpac have their sights, noting plenty of event risk today from AU CPI, Lowe, and the FOMC.

FOMC meeting preview: a non-event? - Nomura

NZD/USD 1-3 month:  

On a wider outlook, the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD to 0.6800 by year end. "US factors should outweigh local factors which are mostly supportive," added the analysts. 

NZD/USD levels

0.7460 was Friday's 10-month high ahead of 0.7485 (the September high). Supports are 0,7400, 0.7386, 0.7280, (11th July high), 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970.