Marginally Softer As New Week Gets Under Way

NZD/USD starts the new week on the back foot amid a broader cautious feel, as participants continue to assess the prospects for a more aggressive policy tightening from U.S. Federal Reserve. The rate trades at $0.6770, 9 pips shy of neutral levels, with little in the way of notable local headlines crossing the wires so far.

• Bears keep an eye on $0.6733, which limited losses on Jan 6. Should the rate manage to pierce that level, focus would turn to the $0.6703/02 area, which provided a layer of support on several occasions in Dec. On the flip side, a clearance of Dec 30/Jan 3 highs of $0.6857 would encourage bulls to target Dec 1 high of $0.6868.
• It should be a fairly quiet week in New Zealand, at least in terms of scheduled events. ANZ Commodity Price Index comes out Wednesday, while building permits are due Thursday, but none of them is a major market mover.