NZD/USD: making minor recovery back on 0.72 handle

NZD/USD has been recovering from the opening gap from above the 0.72 handle from a low of the 0.7196 and is back tracking down the highs of 0.7215.

NZD/USD is better bid over all since last week's US GDP data that missed expectations in a big way and has left markets factoring out a rate hike from the ed in September. This has propped up risk and allows the kiwi room to re-develop a bullish trend in a continuation of the 20th July's breakout of the consolidation zone at 0.6950. Meanwhile, from today,  we have seen the Fonterra milk price forecast for 2016 / 17 that was unchanged at $4.25 kg ms. We have the Chinese manaufacturing data today as the main event ahead of the RBA tomorrow, both of which could be big movers for the Kiwi.

NZD/USD levels

NZD/USD is extending the bullish trend and has resistance at 0.7220 to conquer, guarding 4th July highs at 0.7240 and then 0.7300 psychological barrier. To the downside, 0.6951 are the July lows that meet the 3rd June spike that could thus prove to be a strong level of support.