NZD/USD: in consolidation of the minor recovery to 0.7100

Currently, NZD/USD is trading at 0.7093 having posted a daily high at 0.7100 and low at 0.7085.

NZD/USD is in neutral in early Asia after a day of recovery overnight from 0.7034 having made a high of 0.7101 and breaking through yesterday's resistance. Sentiment overnight was affected by yesterday China's weak trade data and 10% down in exports that lead to a sell-off in equities and bond yields, but also taking the greenback lower with it and enabling the kiwi to rally.

Wall Street drops to lowest levels in four weeks on China trade

NZD/USD levels

Westpac outlook: NZD/USD 1-3 month targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect. 

Current price is 0.7094, with resistance ahead at 0.7096 (Daily Open), 0.7100 (Daily High), 0.7104 (Yesterday's High), 0.7120 (Daily Classic R2) and 0.7143 (Daily Classic R3).

Next support to the downside can be found at 0.7091 (Daily Classic R1), 0.7091 (Hourly 100 SMA), 0.7085 (Daily Low), 0.7082 (Weekly Classic S1) and 0.7076 (Hourly 20 EMA).