NZD/USD: bears back in control ahead of heavy US calendar

FXStreet (Guatemala) - NZD/USD is currently trading at 0.6574 with a high of 0.6581 and a low of 0.6562.

NZD/USD has opened on the bid but met resistance at 0.6580 on the minor rebound of the broader downtrend from the proximity of the 0.67 handle. The calendar for the bird this week is light now with the RBNZ taking its recent course of action last week cutting the OCR again by 25bps to 3%. So focus turns to the exteria economies such as the US.

The market had initially bought in to the bird but sold in to the rally on fears that the RBNZ will need to act again given the global environment and downside risks to the NZ economy. Meanwhile, the week starts off in the US with Durable Goods for June, the FOMC later in the week and then GDP Q2 on a data packed week for the US economy which will be the key driver for the bird this week.

NZD/USD heavily bearish

Technically, the bird remains in a multi-month downtrend and the downside eyes 0.6400. The 15th July lows at at 0.6498 is first target on a break of the current support line of 0.6560.

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