NZD/USD: bulls looking to gather pace above 0.7280 to reverse recent downtrend

Currently, NZD/USD is trading at 0.7252, down -0.15% on the day, having posted a daily high at 0.7213 and low at 0.7201.

Yellen's speech: three important points - Nomura

While Yellen's speech disappointed those hoping for a catalyst to end the week on Friday, NZD/USD has started the week out in a continuation of the recent, yet, minor correction of the downtrend from the 0.73 handle.  "Support around 0.7180 remains critical for determining whether further pushes lower in this cross are going to transpire," explained analysts at ANZ who said that this would be their bias over time. "But with the USD starting the week on the back foot once again, and it being reasonably quiet on the data front, we doubt we’ll see support tested today," the analysts added.

The week ahead: key events for the forthcoming week - Nomura

This week is light on data for the NZ economy, but markets will be looking ahead to the nonfarm payrolls event on the US calendar instead. Analysts at Nomura expect strong nonfarm payroll job gains to have continued in August with the unemployment rate unchanged.

NZD/USD levels

0.7280/00 ahead of the aforementioned 0.7337 recent highs and 0.7370 (9th Aug high) are the immediate resistance areas. To the downside, 0.7220 0.7205, the 06 June 22/21 low and 0.7186, the June 15th low, along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; The 100/200DMA's are in this location at 0.7169/26, while the daily cloud base is located at 0.7139. 0.7127 is the June 6 low and 0.7100.