NZD/USD awaits catalysts from counterparts, but watch GDT

NZD/USD is currently trading within a tight range after quiet markets overnight.

NZD/USD has a relatively quiet docket this week and besides the GTD price index, the bird will instead be subject to news from its counterparts over in China, Australia and the US all of whom report key numbers this week. However, should the GDT pick up again, last was 2.65 vs prior-1.4%, the bird should find some further stability with an ultimate key target of 0.6840 in the price, to marry up with the recent double top last visited on the last release of the data. 

Prior to that level, there are a number of resistances along the way and further data in the week will either make or break the bird as volatility is likely to pick up. Should the Australian or Chinese data come in second to that of the US, the divergence in yields and Central Banks should underpin the bears case for a continuation in the reversal of 2016's uptrend. 

"If macro-prudential measures are tightened, this is likely to be taken as a signal that the RBNZ will be more prone to cut rates again in June. We see scope for a move towards NZD/USD0.65 on a 3 mth view," suggested by analysts at Rabobank.

NZD/USD levels

The double top on the daily chart has played out its role and the price continues to decline headed towards the 200 dma at 0.6649 having broken the 0.6623 100 dma level last week. The 0.6600 level guards a stronger looking 0.6570/80 support level. Conversely, key resistance resides at the 0.6800 area where a break will aim at the 0.6840 double top ahead of 0.6880/90 and 0.7000 double top territory.