NZD/USD bears move in on key support into the last hour

• NZD/USD bears are treading on firm bullish territory at demand.
• The RBNZ is now a key market focus and eyes on 0.6000.

NZD/USD was lower on the day as the greenback came back to push the commodity bloc lower, with the bird hanging over a key support level around the midpoint of the 0.5900s. Headlining into the close of the New York session, NZD/USD was down some 0.5% on the day following a resurgence of the greenback that shattered the bulls.

''Kiwi is lower this morning, having made a more convincing break below 0.60 overnight as risk appetite wavers and US bond yields edge higher again. The more substantive overnight move should quell any debate about whether the 0.60 level has been sustainably breached or not, and technically, it brings 0.5940 (the 76.4% Fibo of the 2020/21 rally) and 0.5915 (the May 2020 low after the April 2020 bounce) into focus, analysts at ANZ Bank explained.

Ahead of next week's key meeting, the markets expect 75 basis points when its policy committee meets next week and lower market hopes for a smaller increase. However, there is a one-in-five chance that the Fed will raise rates by a full percentage point, up from zero a day before the CPI report according to FEDWATCH.

''FX sentiment remains USD/globally driven, and the Kiwi struggled to garner any support from Gross Domestic Product data yesterday. Surprising as that was, given the size of the miss, what that tells you is that the market will be sensitive to next week’s Fed “75 or 100bps” rate hike decision,'' the analysts said.