NZD looks contained between 0.72 and 0.73 - Westpac

Research Team at Westpac, notes that the NZ markets are in a lull as far as key economic data goes, at least until Q2 GDP 15 Sep and the RBNZ 22 Sep.

Key Quotes

“The next dairy auction is not until 6 Sep, but futures markets already point to another rise, albeit closer to 5% than the 10% and 20% jumps of August. That may be helping NZD/USD, which was hurt on Friday after hawkish Fed commentary but then held firm. NZD looks contained between 0.72 and 0.73 in the week ahead but beyond that looks well supported by yields and NZ fundamentals.

Technical: A sharp outside/reversal day on 26th August has all the hallmarks of a top forming at 0.7380 with both weekly and monthly momentum potentially rolling over. Dips have been minimal (holding 0.7210-15) so far, but rebounds are not impulsive. A close above 0.7295 is needed to avoid corrective retracements to at least 0.7115.”