NZD/USD slipping the 0.6750 level early as downside pressure builds early

• Early Tuesday’s risk-on run is seeing challenges as Pacific markets come online.
• Kiwi set to continue playing second fiddle to broader market pressures.

NZD/USD is testing lower in early Tuesday action, challenging the sub-0.6750 zone as the pair looks set to extend a peaking pattern from Monday’s high at 0.6767.

The Kiwi is seeing renewed selling pressure at a near-term high after last week’s dip into the 0.6590 region saw a rebound to close last week in the positive, but bullish bets are getting hampered by a declining trendline from early December’s peak near 0.6970, as well as flagging Antipodean confidence overall.

Little data is expected this week for the NZD, and as market sentiment hangs in the balance on broader stresses including US-China trade talks, and China’s economic slowdown impacting the broader Pacific region, the Kiwi looks primed to continue riding on investor sentiment instead of delivering any intrinsic  bidding power of its own. As noted by ANZ analysts,  “For now, this cross may struggle to go much higher, approaching resistance. And there’s plenty for markets to be nervous about, making us circumspect about the scope for further NZD strength. Nonetheless, global events look set to determine moves this week, with little data on the domestic front.”

NZD/USD Technical Levels