NZD/USD: awaits the budget announced at 0200GMT

Currently, NZD/USD is trading at 0.7045, down -0.08% on the day, having posted a daily high at 0.7052 and low at 0.7043.

Forex today: FOMC no surprises in minutes, DXY and 10-y US yields lower, stocks higher

NZD/USD is steady in early subdued Asia post the FOMC minutes and subsequent weakness in the greenback.  The bird took advantage of the expectations for a positive budget coming up later in Asia while the FOMC minutes failed to June's nail in the coffin at the same time. There was talk of tapering in due course by way of settlement at maturity, but the lack of conviction from the Fed over the data had the market a little spooked. However, commodities and risk helped NZD/USD to 0.7057 retaining positive momentum. Analysts at Westpac expect a limited range between 0.7050-0.7100 for today.

NZ: Budget likely to show that economy’s performance is generating greater revenue - BBH

NZD/USD 1-3 month:  

Further out, analysts at Westpac argue that the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end. "US factors should outweigh local factors which are mostly supportive."

NZD/USD levels

Immediate resistance remains at 100-day SMA near 0.7050-58 region where stops are tipped. Then, through 0.7047 as being Tuesday's high opens 0.7088 and 0.7148 resistances. To the downside, 0.7020, 0.700, 0.6980 and the 50 daily sma at 0.6949 are the key supports.