• Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
  
  
• Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
  
  
• Technicals indicated downside for the pair:
  
  - We see divergence between price action and momentum indicators - Stochastics and RSI
  - Stochs have rolled over from overbought levels with a bearish crossover
  - RSI is biased lower
  
  
• Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
  
  
• Higher-yielding currencies like the Kiwi to struggle as sentiment remains weak and oil is seeing renewed downside.
  
  
• We see the pair test trendline support at 0.6635 and further weakness could see 0.6565 levels.
  
  
• Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising trendline).
  
  
• On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).
  
  

Recommendation: Sell rallies around 0.6735/40, SL: 0.6820, TP: 0.67/0.6655/0.66