- NZD/USD downside intact, pair likely to test 200-DMA at 0.6650. Break below could accentuate weakness.
- US dollar to keep upbeat momentum post hawkish Yellen comments which raised Fed rate hike bets.
- On the other hand, commodities struggling to keep upside momentum, denting scope for upside in the Kiwi.
- Technically the pair finds minor support by trendline at 0.6680, break below will see test of 200-DMA at 0.6650.
- Break below 200-DMA could accentuate weakness, raises scope for test of next major support by 0.6485 (trendline).
- On the NZ calendar we have: business confidence (ANZ,Tue), as well as a growth gauge (also contains inflation expectations components), the GDT dairy auction is on Wed.
- The US calendar is more important, May non-farm payrolls on Fri posing downside risks for the US dollar.
Recommendation: Good to short break below 0.6680, SL: 0.6740, TP: 0.6650/0.66/0.6575
