NZDUSD Hits Second Target
The NZDUSD short trade from .6806, issued ahead of the latest US CPI readings, has now hit its second target at .6596. NZD has come under heavy selling pressure over recent sessions as a reversal lower in risk assets has hit the high-beta currency. With Fed hawkishness and fresh uncertainty around the Ukraine conflict likely to keep risk appetite diluted near term, NZD looks vulnerable to further downside. While price holds below the .6703 level, bears can look for a move down to the .6531 level next and .6450 thereafter.
Keep an Eye On
Little in the way of top tier data over the coming week, aside from USD GDP on Thursday. However, we also have a raft of tier 2 US data which is likely to see USD remain well bid provided we see no surprising undershoots. Aside from USD flows, keep an eye on broader risk sentiment as a continuation lower in risk assets this week is likely to keep NZD weighted for further downside.
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