NZD/USD: watching politics/ dairy prices, headed to 0.7055?

Currently, NZD/USD is trading at 0.7158, down -0.14% on the day, having posted a daily high at 0.7171 and low at 0.7157.

NZD fell from 0.7190 to 0.7155 in the NY session. The US dollar was leaning against the 94.00-20 big pivot level while the US 10yr yields rose from 2.30% to 2.35% after some strong economic data in the ISM Services that was the strongest headline number since 2005.

US ISM Non-manufacturing: Supply disruptions boost headline  - Wells Fargo

Analysts from Wells Fargo, explained that ISM nonmanufacturing index’s 4.5 jump to 59.8 was likely exaggerated by storm disruptions, but they added that details generally suggest growth remains solid.

NZD/USD 1 day:

Analysts at Westpac explained that the kiwi Broke below 0.7170 minor support, signalling a move to 0.7130 (end-Aug low). "Uncertainty around dairy prices and the election, as well as a USD recovery, continue to weigh," the analysts added.

NZD/USD levels

Closes below 0.7150 opens 0.7127 as the June 6th low. 0.7100 is the key psychological level. 0.7055 comes next as the June 1st low and then 0.7000. 

In a change of direction, the Kiwi needs to get through 0.7240 as a major hurdle of which a break of could open doors towards  0.7315. 0.7370 (the 9th Aug high) is the next key hurdle on the upside. A break there would solidify a bullish trend back towards 0.7522 and the YTD highs so long as there are closes on the 0.74 handle and beyond the post FOMC kneejerk highs of 0.7434.