NZD/USD taps 30-month low to start the week

  • Bearish profit-taking could be giving the Kiwi a much-needed breather.
  • With little action on the calendar, the NZD is exposed to broader market sentiment this week.

The NZD/USD is kicking into 0.6590 in the early week's trading action after a steep decline last week saw the Kiwi sink to a 30-month low.

The Kiwi is seeing a mild uptick for Monday's outset, but broad-market risk aversion is going to see challenges for the NZD at the 0.6600 major level.

Data for the Kiwi is incredibly light this week, and Monday's early reading of New Zealand's Food Price Index (actual 0.7%, last 0.5%), a low-tier indicator, represents the only action on the calendar for the NZD until late Thursday's printing of NZ's Producer Price Index.

NZD/USD levels to watch

With the Kiwi breaking into multi-year lows and markets expected to continue suffering from risk aversion on the back of contagion fears stemming from Turkey, The NZD/USD is looking down the barrel of further declines with little support seen on the way to 0.6350, 2016's technical bottom for the pair while bulls are at risk of getting trapped by resistance from 2017's swing lows near the 0.6800 major level, with the Kiwi's last major swing high at June's peak of 0.6860 acting as secondary resistance.

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