NZD/USD: dumps on RBNZ expectations and Q2 CPI miss

NZD/USD has dropped sharply on the back of the NZ CPI data. 

NZD/USD fell from 0.7162 down to 0.7072 lows and is stabilizing at 07080/90. New Zealand Q2 CPI came out as 0.4 % q/q vs 0.5% expected and 0.2% prior while the y/y at 0.4% vs 0.5% expected and 0.4% previous, all pointing to a rate cut from the RBNZ who has remained cautious and outspoken as prepared to act if need be.  

NZD/USD levels

NZD/USD momentum turned negative at the close of last week's business and has reached first downside target of 0.7080. "The uncertainty generated by Brexit plus further RBNZ easing should be negative for the NZD. We target 0.67," argued analysts at Westpac. Prior to 0.67, 0.7056, 0.7000, 0.6963/80 are next supports. A break there opens 2nd June lows of 0.6799.