NZD/USD: bears held up, but for how long?

NZD/USD is mildly bullish at the margin after a risk on day overnight and start to the week in European and US markets soaking up the weekend's events and oil rallying for the best performance in over a year. 

NZD/USD has been consolidating the October supply that was making lows of just shy of breaking the 0.71 handle. The theme remains with a strong dollar and speculation that the Fed will be hiking interest rates again soon, possibly before the year is out or even in November. This is in stark contrast to that of the RBNZ's policy who had been advocating further easing before the year is out. We might get a hint of what is to come today in a private event speech from the RBNZ’s McDermott on inflation which markets will read and eyes are on the Friday’s 0.7110 low that remains vulnerable. 

NZD/USD levels

On a break below the 0.70 handle, the 0.6950 level comes into focus and could be a target  if the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as analysts at Westpac said they expect to see. 

Market outlook for the antipodeans - Westpac

Meanwhile, the current price is 0.7138, with resistance ahead at 0.7140 (Hourly 20 EMA), other levels as 0.7144 (Daily High), 0.7151 (Daily 100 SMA), 0.7160 (Daily Classic PP) and 0.7161 (Hourly 100 SMA). Next support to the downside can be found at 0.7136 (Daily Open), 0.7136 (Monthly Low), 0.7136 (Weekly Low), 0.7133 (Daily Low) and 0.7122 (Yesterday's Low) ahead of Friday's low of 0.7110.