NZD/USD: testing the key psychological 0.7200 to the downside

NZD/USD is currently on the offer in early Asia, dropping from 0.7245 down to test the 0.72 handle with a low of 0.7204 so far.

We had the GDT data at 6.6% overnight while in early Asia, we got some Q2 data that was released with average hourly earnings at 0.8% q/q vs the expected +0.9% vs the previous 0.3% while private wages, including overtime arrived at  0.4% q/q vs expected 0.4% and the prior of 0.4% while private wages excluding overtime for the same period arrived at  0.4% q/q vs expected 0.5% and the prior that was 0.4%. Meanwhile, on Friday we have the nonfarm payrolls data as main catalyst for the week. For today we now await Caixan Chinese services PMI.

NZD/USD levels

NZD/USD is knocking on the door of 0.7200 and on a break, 0.7160 comes into focus as the recent low ahead of  the 4hr 200 sma at 0.7130 and 0.7000/20 thereafter. On a continuation of the upside, 0.7380 is the recent highs for mid-late July business for a target to 0.7400 in an extension of the 2016 ascending channel.