NZD/USD down -0.20% on the day at 0.7294 supported by 200 1hr sma, 0.7286

Currently, NZD/USD is trading at 0.7294, down -0.20% on the day, having posted a daily high at 0.7313 and low at 0.7294.

Wall Street mixed in volatile US session with plenty going on

Despite a pick up in the GDT price index at 1.3% vrs prior 0.6%, NZD/USD is softer as the week progresses on the back of a resurgence in the greenback, positive local data in the US and hawkish fed speak while markets fully price in a rate hike in July at 100%. However, the correction in the dollar is fragile, with plenty of volatility and the DXY capped at the mid-way point on the 100 handle. Meanwhile, we turn our heads towards the RBNZ who analysts at Westpac expect to remain on hold at 1.75% at Thursday's MPS, and to retain a neutral bias, which shouldn't ruffle markets much. "There's a small risk of a hawkish shift." 

NZD/USD levels

NZD/USD bears are held up at the 200 sma on the 1hr sticks at 0.7286 while analysts at Westpac suggested that the month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. "Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (1 Feb)."