NZD/USD down -0.36% on the day, testing below the key 200-d sma

Currently, NZD/USD is trading at 0.7171, down -0.36% on the day, having posted a daily high at 0.7220 and low at 0.7156.

NZD/USD has been one of the top performers this year's far, something that the RBNZ noted and have explained the bird is 7% too high, in so many words, when jawboing after their recent interest rate decision where rates were left on hold with optimism in the economy while they continue to monitor risks ahead. Some of these risks are stemming from the Trump protectionist theme and globalisation under threat along with the fourth coming EU elections. 

Another prop has been the commodities sector and a correction in the US dollar. Copper prices, supporting the Asian commodities bloc in general, has been elevated, however, as acknowledged by Kit Jukes, an economist at Societe Generally, the Escondida copper mine strike continues and is now clearly having an impact on prices. "It's worth watching given the tendency for commodity prices to correlate," explained Juckes, adding,"With last week's Chinese data continue to beat market expectations, there is still no encouragement at all for bears of commodities or of China or commodity-sensitive currencies." 

Key events: watch Trump's tax plan and Yellen's congressional testimonies - UOB

NZD/USD levels

The Kiwi was bouncing at the end of last week, but not today and noting the hourly FXStreet OB/OS Index that is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish, there is a bearish bias that persists on the shorter time frames with the price in a correction of the 2017 bullish story from 0.7380 2017 highs. The price has broken lower below the 200-day SMA at 0.7166 with the low at 0.7155. 0.7100 is the key downside target while a correction of the correction nd a resurgence from the bulls would target a break of the descending resistance gain through 0.7280 and on to test 0.7380 again with a key focus on the 0.74 handle.