NZD/USD: in slight recovery against the odds on through 0.7050

NZD/USD is currently making a recovery in early Asia on profit taking in the USD and is heading slightly north of the mid-point of the 0.70 handle.

However, the odds are stacked against the bird, especially given the RBNZ's outlook for as early as November where markets are expecting the Central Bank to cut the OCR yet again. RBNZ McDermott spoke yesterday and has underpinned such expectations. The DXY was racing ahead today and the bird fell further on an extension of yesterday's drop from a cent higher than current spot. 

Analysts at Westpac offered NZD/USD in a 1-3 month outlook:  "Vulnerable to breaking below 0.7220 towards 0.6950 if the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect. (3 Oct)"

NZD/USD levels

Meanwhile, the current price is 0.7071, with resistance ahead at 0.7071 (Hourly 20 EMA), 0.7074 (Daily High), 0.7082 (Weekly Classic S1), 0.7085 (Daily Classic S2) and 0.7111 (Daily Classic S1).

Next levels to the downside can be found at 0.7056 (Monthly Low), 0.7056 (Weekly Low), 0.7056 (Daily Open), 0.7051 (Daily Low) and 0.7049 (Daily Classic S3).