NZD/USD: the bear's floodgates are open on that break of the 200 DMA

Currently, NZD/USD is trading at 0.7117, up 0.02% on the day, having posted a daily high at 0.7120 and low at 0.7114.

Here is a bearish view on the dollar - Scotiabank

NZD/USD was seeing some extra downside in the early part of Asia on the NY handover making for a fresh low since June 1st business.  Broad-based USD strength took the bird off its perch with a lift in  UST yields lift leading to a sharp drop in the NY session. The 200-DSMA was broken as a result and the August & June 5 lows were cleared. 

Forex today: dollar and rates lifted on hawkish Fed chat/positive US data and gold extends the slide

NZD/USD 1 day: 

Analysts at Westpac noted that the next level to target is 0.7090 – the March peak, "...probably dependant on the USD recovering further (for which tonight’s US payrolls data is key)."

NZD/USD 1-3 month:  

"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on a delivery of a Fed interest rate rise in December, then NZD/USD could fall to 0.70 by year-end," the analysts at Westpac explained.

NZD/USD levels

Below 0.7090 holds 0.7055 as the June 1st low and then 0.7000. 

The downside was confirmed yesterday with the higher wick on the daily stick and RSI/momentum accelerating south. Very little out there supporting a correction/reversal, but the Kiwi needs to get through 0.7240 as a major hurdle to confirm a significant correction of which a break of could open doors towards 0.7315.

0.7370 (the 9th Aug high) is the next key hurdle on the upside. A break there would solidify a bullish trend back towards 0.7522 and the YTD highs so long as there are closes on the 0.74 handle and beyond the post FOMC kneejerk highs of 0.7434.