NZD/USD downshifting below 0.6550
|- The Kiwi can't quite shrug off Dollar bidding, continues to push into near-term lows as the USD rises.
- A data-light showing from here on out leaves the NZD exposed to further Greenback pressures.
The NZD/USD is shuffling its feet near 0.6540 as the downside continues to pull at the Kiwi pair, as a data-thin week sees the NZD under the control of broader market flows
The US Dollar received an early-session boost from the FOMC's latest Minutes, which show the US Fed continuing to lean firmly into the hawkish side, keeping the Kiwi-Dollar pairing off of the week's peaks near 0.6595.
The week's early surge from better-than-expected CPI data for New Zealand has run out of steam quickly and the NZD is looking back into familiar lows with the rest of the week's economic calendar leaving the NZD meaningfully unrepresented.
NZD/USD Levels to watch
The NZD/USD remains almost fully-driven by flows into and out of the Greenback as the Kiwi remains bootstrapped to market sentiment, and as FXStreet's own Ross Burland noted, "the monthly charts remain indicative of a continuation to the downside where we are seeing a sea of red still and this recent turn un the greenback, back to 95.50, is bound to enforce a cap on additional corrections - leaving the bird prime for fades on rallies. However, a break of the descending channel's resistance line and 0.66 the figure opens the room to 0.6633 as the 76.4% Fibo target, although, the more likely scenario is an extension of this downside to S3 located down at 0.6526 once the 23.6% gives way - and despite the recent run of NZ data that the RBNZ is more than likely to see as transitory while firmly n hold for the foreseeable future - in stark contrast to that of the Fed."
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