NZD/USD bears waiting to pounce, 0.7080 eyed

• NZD/USD is under pressure as traders in Asia take over the baton. 
• Bears will be looking for a break of the hourly dynamic trendline support. 

NZD/USD is starting out the Asian session at a precarious position on the charts. The pair ended on Wall Street down some 0.4% on the day after falling from a high of 0.7174 and meeting a low of 0.7109 in the mid-New York session. The pair has since corrected a significant portion of the slide, but bears are lurking at hourly resistance, as illustrated below. 

At the time of writing, NZD/USD sit s at 0.7132 after another night of haphazard trading. ''The USD DXY index was actually little changed, but AUD and NZD are both lower, with newswires blaming everything from a souring in risk appetite to softer copper prices,'' analysts at ANZ Bank explained. ''It is difficult to be definitive, but having done well on most crosses, the NZD is under renewed pressure this morning, and holding above 0.72 has been a struggle of late.''

Key events in focus

Meanwhile, the key events for the week are minimal on the domestic front, but Aussie jobs data and US inflation numbers could move the needle on the bird. US Consumer Price Index data is what markets are in anticipation of the most. Economists polled by Reuters see monthly CPI accelerating to 0.4% from the previous month's 0.2% rise, with the closely watched year-on-year core measure gaining 0.3 percentage points to 4.3%, well above the Fed's average annual 2% inflation target.

As for Aussie jobs, what goes down in Australia is expected, usually, to impact the kiwi. However, there has been a divergence of themes between the two central banks playing out of late. The kiwi has been drawing support from the possibility that the Reserve Bank of New Zealand could raise rates by as much as 50 basis points later this month. 

NZD/USD technical analysis

Should the bears take out the trendline support, then the horizontal 0.7120s will be pressured and a break thereof could give rise to a fall into the bear's target zone between 0.7105 and 0.7070 in the coming sessions.