NZD/USD heavy, set to test 0.6700

By FXStreet FXStreet (Mumbai) – NZD/USD is seen posting size-able losses as we progress towards the mid-Asian trades, and is likely to emerge the worst performer this session.

NZD/USD trades below daily pivot

Currently, the NZD/USD pair trades -0.52% lower at fresh session lows at 0.6709, failing to resist 200-DMA at 0.6784. The Kiwi halted is 2-day rally and reversed almost half of Friday’s rise as the bears jumped back in the game amid growing expectations of RBNZ rate cut this week. Markets are pricing in around a 50% possibility that the RBNZ will slash the cash rate to 2.50% on Thursday, on the back of softer inflation outlook and lower dairy prices.

Moreover, the recent decline in Oil prices after OPEC’s meeting last Friday ended with no production and poured cold waters on the expectations of output cut, also weighs on the resource-linked Kiwi. While broad based US dollar strength in the run up to the Fed showdown next week further adds to the bearish pressure on NZD/USD.

Meanwhile, the Antipode is expected to get influenced by a set of Chinese macro releases and the key RBNZ rate decision scheduled later this week.

NZD/USD Levels to consider

To the upside, the next resistance is located at …read more

Source:: FX Street