NZD/USD: headed towards 0.73?

Currently, NZD/USD is trading at 0.7261, up 0.07% on the day, having posted a daily high at 0.7266 and low at 0.7250.

Data: New Zealand - Building permits for July arrived -0.7% m/m vs prior -1.0%. We now await a speech from RBNZ's Wheeler - 'Reflections on the stewardship of the Reserve Bank', thus unlikely to offer anything that traders will find as a catalyst to buy or sell the bird.

NZD/USD has been slightly bid in early Asia, in a correction of the downside from around the 0.73 handle when the dollar perked up in the late US session. 

US stocks rallied, ironically as concerns that the Fed will not be in a position to taper next month let alone hike rates in December considering the external headwinds and geopolitical tensions. US rates also ended flat in a recovery on the session. 

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NZD/USD 1 day: 

Analysts at Westpac argued that the bird is heading towards 0.7300 as long as the US dollar remains downtrodden.

NZD/USD 1-3 month: 

"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end. Pre-election jitters may also weigh on the NZD," the strategists added. 

NZD/USD levels

0.7280/00 remains the key and initial resistance area ahead of the 0.7337 recent highs and 0.7370 (9th Aug high) that all fall in as the immediate resistance areas. To the downside, 0.7220/45, 0.7205, the 06 June 22/21 low and 0.7186, the June 15th low, along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; The daily cloud base is located at 0.7139 and 0.7127 is the June 6 low and 0.7100.