NZD/USD stick around 0.72 the figure on key day ahead the Aussie

Currently, NZD/USD is trading at 0.7205, up 0.08% on the day, having posted a daily high at 0.7207 and low at 0.7195.

NZD/USD's squeeze higher yesterday left it vulnerable overnight when the US dollar bounced on the interim deal to extend the US debt limit.

"With domestic political uncertainty intensifying, and this having the potential to weigh on economic activity over H2 2017, we see the NZD biased lower. A test of the 200-day MA around 0.7130 still appears on the cards at some stage," analysts at ANZ argue. 

NZD/USD 1 day: 

Meanwhile, for today, the bird is stuck around 0.72 the figure needs ahead of key events from Australia in the retails sales and trade balance data that could have an effect on the price of the bird as well. 

NZD/USD 1-3 month:  

Further out, analysts at Westpac explained that if the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end. "Pre-election jitters may also weigh on the NZD."

NZD/USD levels

To the upside, 0.7220, 0.7280 and 0.7300 are the next key and initial resistances before 0.7337 recent highs and 0.7370 (9th Aug high). To the downside, 0.7195 is the recent low ahead of the daily cloud base that is located at 0.7139. 0.7127 is the June 6 low and 0.7100 is a key psychological level.