NZD/USD: tracking lower towards key technical areas below the 0.72 handle

Currently, NZD/USD is trading at 0.7203, down -0.15% on the day, having posted a daily high at 0.7213 and low at 0.7201.

NZD/USD been slightly offered in the latter part of the US session and analysts at Westpac explained that for today at least and ahead of the Jackson Hole speeches, the 0.7200 area remains vulnerable to a break lower. 

NZD/USD 1-3 month:  

The analysts at Westpac explained that if the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end. "Pre-election jitters may also weigh on the NZD," added the analysts.

How will Yellen and Draghi 'perform' at the Jackson Hole?

In respect of the Jackson Hole speeches, markets are anxious ahead of the events while durable goods will also be a potential catalyst and important for the dollar.

NZD/USD levels

0.7240 and then 0.7280/00 ahead of the aforementioned 0.7337 recent highs and 0.7370 (9th Aug high) remain as the immediate resistance areas. To the downside, 0.7220 0.7205, the 06 June 22/21 low and 0.7186, the June 15th low, along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; The 100/200DMA's are in this location at 0.7169/26, while the daily cloud base is located at 0.7139. 0.7127 is the June 6 low and 0.7100.