NZD/USD range bound ahead of RBNZ and NZ elections, eyes the 0.73 handle

Currently, NZD/USD is trading at 0.7261, up 0.28% on the day, having posted a daily high at 0.7265 and low at 0.7231.

NZD/USD is finding demand in a risk-on environment while the greenback struggles below the 93 handle and made fresh two-year lows at 92.19 in the DXY. However, the bird remains in the familiar ranges and it is likely to keep to a range ahead of the 23rd September NZ election and 27th Sept RBNZ.

US: Dollar may bite back, especially if tax reform comes through - AmpGFX

38% probability of a Dec Fed hike

"The dollar fell sharply at the end of last week," explained analysts at Brown Brothers Harriman. "A fair hearing of both Yellen and Draghi's speeches at Jackson Hole shows neither addressed near-term monetary policy.  The December Fed Funds futures contract was unchanged on Friday and for the week as a whole.  Bloomberg's model suggests a 34.7% chance of a hike by the end of the year is discounted.  In the CME's assessment, the market has priced in a 40% chance.  Our calculation, which assumes no chance of a hike September or November, puts it at a 38% probability."

NZD/USD levels

0.7280/00 comes before the 0.7337 recent highs and 0.7370 (9th Aug high) that all fall in as the immediate resistance areas. To the downside, 0.72/2030 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 daily cloud base is located at 0.7139 and 0.7127 is the June 6 low and 0.7100.