NZD/USD: remains vulnerable ahead of nonfarm payrolls key event

Currently, NZD/USD is trading at 0.7437, up 0.03% on the day, having posted a daily high at 0.7440 and low at 0.7433.

NZD/USD was on the front foot in minor recovery from the selling the took the bird below the 0.7460 support in the European shift.  The dollar took a turn for the worse again and commodity currencies took advantage ahead of the main event in the US session tomorrow in Nonfarm payrolls. However, for today, analysts at Westpac noted that the bird has been slipping lower in recent days and remains vulnerable.

Forex today: dollar failed by more data disappointments, sterling offered on BoE

NZD/USD 1-3 month:  

On a longer term outlook, the analysts noted that the stretched technical indicators and stretched long positioning argue for a decent downward correction, but said until the broad US dollar starts to recover from its seven-month old decline, the NZD can remain elevated. "Eventually if the Fed’s normalisation cycle pushes US interest rates and the US dollar higher, NZD/USD could fall to 0.6800 by year end," argued the analysts. 

NZD/USD levels

To the upside, 0.7450 ahead of the key 0.7480 is the near-term resistance area. 0.7520/25 double top highs are ahead of the 21st July high at 0.7557. In a continuation, 0.7744 were the April 2015 highs ahead of the opening highs for that year at 0.7889. To the downside, 0.7400, 0.7386, 0.7280, (11th July high), 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970.