NZD/USD: bearish view towards 0.6900

NZD/USD is consolidating along a support line a touch below the 0.72 handle with upward momentum stalling.

NZD/USD recently advanced from the 0.71 handle to score through 0.7320 resistance before profits were booked leading to heavy supply resulting in 0.7250 acting as next resistance on a bounce from 0.7200.  

NZD range narrows with bearish bias

The range is now between 0.7150-0.7250 range while analysts at Westpac's longer term view, between 1-3 months, suggests that the RBNZ’s easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.69 during the months ahead, "Although recent BOE and BOJ easing have made the NZD even more attractive to global investment flows such that a test of 0.73 is possible first." For the week ahead domestically, GDT price index and employment data is due while the FOMC minutes from the US docket could prove to be a further catalyst.