NZD/USD: consolidates DXY strength ahead of RBNZ tomorrow

Currently, NZD/USD is trading at 0.7240, down -0.02% on the day, having posted a daily high at 0.7248 and low at 0.7236.

Forex today: DXY has its best day for a while, +0.24%

NZD/USD has been in a tight range, consolidating the downside with the resurgence in the DXY that ended up 0.20% on the day overnight. US yields were lower and out of synch, but this was due to the UK gilts leading the way from the European session, the downside as a result of Carney's bold statement that rates would be on hold for the foreseeable future. 

Fedspeak: mixed messages but not shaken by downside surprises - Nomura

The bird was damaged by a slide in the commodities that also added to the idea that inflation probably isn't too concerning at the moment on a global scale. However, the main focus this week for the Kiwi will stay with the RBNZ.

The recent GDP was a miss and markets are not expecting anything particularly hawkish from the RBNZ tomorrow, but indeed the OCR will likely be left on hold at 1.75% while they are expected to repeat May's neutral policy guidance.

NZD/USD levels

NZD/USD managed a score through the 0.7250 mark but fell shy of the key level of 0.7280 upside target and only managed a high of 0.7267. To the downside, 0.7220 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.