NZD/USD remains steady under 0.7000

NZD/USD traded momentarily above 0.7000 at the beginning of the week but quickly pulled back below. During the Asian session bottomed at 0.6955. Since then it has been trading in a range between 0.6970 and 0.6970.

Another range

It continues to move sideways, consolidating  after a sharp decline from 0.7300 to 0.6950. The kiwi tumbled amid speculations that the Reserve Bank of New Zealand, will cut rates at the next meeting in August.

The pair found support at 0.6950, area that is now the most relevant support in the short-term while to the upside, it is being rejected from above 0.7000.

The 0.6950 zone is a key support that also limited the downside back in June; a break lower would open the doors for more slides. Possible support levels could be seen at 0.6900/05 (June 6 low) and 0.6835/40 (May 17 & 18).