NZD Facing Light Pressure As Caution Creeps In

NZD/USD has slipped in tandem with AUD/USD (which has shed a handful of pips since the time the AUSSIE bullet was published), as some light risk aversion has crept in, with e-minis sliding after the re-open. Those risk-off flows may be related to uncertainty surrounding U.S. fiscal matters, after U.S. Pres Trump's decision to sign four executive orders re: stimulus measures sparked controversy on both sides of the aisle, while parties to fiscal negotiations on the Capitol Hill remain divided. Continued concern over escalating Sino-U.S. tensions and global coronavirus situation may also be hurting risk appetite. NZD/USD last trades -11 pips at $0.6595.

• Worth taking a look at NZ politics today, as we enter the last straight ahead of the Sep 19 general election and parties launch their campaigns. In addition, the Cabinet meets today and will discuss creating a travel bubble with the Cook Islands.
• Bears look for a dip under Aug 3 low of $0.6575 before setting their sights on $0.6538/32-28, which represent the 50-DMA/Jul 15-20 lows. Bulls need a rebound above Aug 7 high of $0.6691 before taking aim at Jul 31 high of $0.6716.
• Preliminary ANZ Business Confidence headlines in New Zealand today, with one eye also on Chinese inflation data. Later in the week, card spending comes out on Tuesday, while BusinessNZ M'fing PMI hits on Friday. That said, the RBNZ's MPS, due Wednesday, will likely steal the limelight.