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NZD/USD Wavers Below 50-DMA, Eyes Lockdown Review

KIWI

NZD/USD kicked off above Friday's close, only to slip into negative territory and edge back towards neutral levels, all within a 24 pip range. The rate has operated just under its 50-DMA and last trades flat at $0.6540.

  • NZ public health experts and business leaders are at loggerheads over the imminent review of Auckland. They took it to local media to defend their positions, as a potential lowering of alert level to 2 from 3 sparks controversy. The Cabinet will discuss the matter today and PM Ardern will announce the decision at 15:00 NZST.
  • New Zealand reported three new Covid-19 cases on Sunday.
  • A breach of Aug 20 low of $0.6489 is needed to allow bears to set their sights on Jun 22 low/200-DMA at $0.6377/74. Conversely, a jump above the 50-DMA at $0.6555 would encourage bulls to take aim at Aug 19 high of $0.6651.
  • New Zealand will publish Q2 retail sales data shortly, the magnitude of the hit from lockdown measures will be scrutinised. Looking further afield, trade balance comes out Wednesday, while ANZ Consumer Confidence is due Friday.

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