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NZD/USD downside wide open eyeing 0.7120

FXStreet (Guatemala) - NZD/USD is currently trading at 0.7356 on a slow start to the week, post the action over the Nonfarm Payrolls event of last week.

NZD/USD has settled down since Friday's turbulence that came in a spectacular Nonfarm Payrolls release. The pair was offered down to 0.7330 vs a high of 0.7477 before drifting and settling down to the mid point of the 0.73 handle. On a quiet start to the week, looking ahead there are a handful of data releases from New Zealand his week, starting with REINZ house price index tomorrow, retails card sales the following day and Business NZ PMI for Jan the next. From the US, we have a number of Fed speakers ahead of key Retail Sales mid week and Consumer Sentiment at the end of the week.

Technically, over the medium term, the outlook remains with the downside and Imre Speizer, analyst at Westpac explained the next major target is 0.7120. "As long as the US dollar’s uptrend remains intact, a break below 0.71 is likely."

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