NZD/USD headed for a break below the 0.72 handle?

Currently, NZD/USD is trading at 0.7241, down -0.63% on the day, having posted a daily high at 0.7314 and low at 0.7236.

NZD/USD has stabliszed after falling to a session low on the back of the latest dairy auction prices in New Zealand that have shown a -0.4% decline to an average price of $3,339 per tonne.

• Whole milk powder price index falls 0.6%
• Whole milk price averages $3143/metric tonne

Meanwhile, we await the FOMC minutes this week as a potential catalyst. The dollar already got a boost from a strong bunch of retail sales figures for July that are very good. The data was rising 0.6%MoM in July versus the consensus 0.3% forecast. 

US: Retail sales for July 2017 were $478.9 billion, an increase of 0.6% from June

"Markets continue to focus on current low inflation rates, but with the labour market tightening and the growth story looking ok the prevailing view within the Fed is likely to remain that low inflation is merely "transient". We think inflation will be back at the 2% target by the end of the year and also predict a December Fed rate hike. We continue to expect two more 25bp hikes next year," explained analysts at ING Bank

NZD/USD levels

Supports are 0.7205/06 June 22/21 lows; 0.7186 June 15 low, the 50% of the move up from the 2017 low (May low) at 0.7187; 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.  To the upside, 0.7290/00, 0.7330 and 0.7370 (9th Aug high) are the first resistance areas.