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NZD/USD gets smashed to the downside

FXStreet (Guatemala) - NZD/USD is currently trading at 0.6624 with a high of 0.6688 and a low of 0.6606.

NZD/USD's shine has been wiped off and all in an early illiquid start to the Asian and FX week on the open. There was a catalyst in the Yen bears flexing their muscles in a risk-off environment setting off a stampede against the AUD and NZD. NZD dropped an initial 20 pips to weak support and moved lower through the 66 handle until finding demand at the ceiling of the sideways drift from the closing sessions in Asia's business last week where the bird had otherwise been supported on the back of the dovish FOMC minutes.

The next data to watch out for will come from the US half of the unit, in GDP and the US GDP revisions to Q2. This should be positive for the dollar, and should be supportive of a positive Q3 on the handover. For NZ, we may have leaks of what the RBNZ deputy has to say in respect to the housing sector while he will be talking at a private function.

NZD/USD testing key support

Technically, the bird is testing key support while remaining on the 066 handle. However, momentum is strong and a close below would open targets for 0.6520 and 0.6480. To the upside, 0.6680/00 guards 0.6710 and a climb back to the psychological 0.70 handle.

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