NZD/USD: bears still some way of critical support at 0.6860

Currently, NZD/USD is trading at 0.6899, down 0.00% on the day, having posted a daily high at 0.6905 and low at 0.6895.

NZD/USD is consolidated within a 20 pip range around the 0.69 handle ahead of today's nonfarm payrolls report. The ADP report was very bullish in respect to a decent headline in the report and the dollar is consolidating the highs seen since Fed speakers have been advocating a hike this month. 

The DXY finished the US session on the back-foot with the ECB's less dovish presser that drove demand into the euro. Nevertheless, the kiwi was still better offered at attempts through the 0.69 handle and fades sent the bird to 06889 lows. 

NZD/USD 1-3 month:  

The Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down to 0.6900 or lower. Additional, and more recent, negative factors have been weaker dairy prices plus the RBNZ’s emphatic reminders it is on hold for a long time. (8 Mar).

NZD/USD levels

NZD/USD bears are yet to make it to the key 23rd Dec lows of 0.6860. This is the milestone support level and a break of that level will compromise the bullish trend's channel from late Sep 2015 lows at 0.6270. On a reversal on the 0.69 handle, bulls will need daily closes above 0.7250 at least to put the bird back into a bullish position.