NZD/USD below key support and 0.70 handle, new lows and more to come?

Currently, NZD/USD is trading at 0.6992, down -0.06% on the day, having posted a daily high at 0.6999 and low at 0.6988.

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NZD/USD continues to fall away and there are little signs that the supply is about to dry up with a target of the 24th Nov low at 0.6970 just 20 pips away. The market is happy that the RBNZ will remain on hold while the Fed is on the path to hiking rates at least three times this year despite a lack of compelling evidence that indeed the US economy is about to improve significantly and the labour market only just starting to pick up. 

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However, the Fed speakers are hawkish and inflation has started to rear its head meaning the FOMC wish to get ahead of the curve. With the Fed hiking plus a US fiscal expansion under Trump's administration should mean that markets continue to apply upside pressure on US interest rates and the US dollar.

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NZD/USD levels

Bears are testing this double bottom area through the 200-d smoothed sma at 0.6999 and eye the 0.6970 and 29th Nov lows. Beyond there lie 22nd Dec lows of 0.6860 and late Dec highs. 0.6680 is the key milestone support level and a test below here will compromise the bullish trend's channel from late Sep 2015 lows at 0.6270. 0.7250 to the upside will put the bird back into a bullish position.