NZD/USD: capped by 0.72 the figure, awaiting key events

Currently, NZD/USD is trading at 0.7164, up 0.03% on the day, having posted a daily high at 0.7166 and low at 0.7160.

NZD/USD has been consolidating within a mild risk-off environment following the weekend's news over N.Korea. The bird is yet to close the bearish gap from yesterday's open and as such remains in the bear's layer as we await today's GDT dairy auction. "Futures are pricing a 3% gain in whole milk powder prices," noted analysts at Westpac. We also have the RBA meeting today of which could offer some price action in the Antipodeans as well.

Plenty to come from the antipodeans this week - ANZ

NZD/USD 1 day: 

"Continues to underperform amid flickers of life in the USD and election uncertainty. Capped by 0.7200," explained analysts at Westpac.

NZD/USD 1-3 month:  

"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end. Pre-election jitters may also weigh on the NZD," argued Westpac's analysts. 

NZD/USD levels

To the upside, 0.7200/30 levels guard 0.7280/00 as the next key and initial resistance area ahead of the 0.7337 recent highs and 0.7370 (9th Aug high). To the downside, the daily cloud base is located at 0.7139 and 0.7127 is the June 6 low and 0.7100.