NZD/USD: subdued in consolidation on 0.68 handle

NZD/USD is subdued in early Asia after falling back from the overnight highs of 0.6844 scored in the early US session.

There have been a lack of drivers expect for oil and the commodity sector overnight, while for today we have seen the data for today already in the business sector with business PMI arrived at 56.5 and in an improvement on prior 54.7. For the meantime, markets are preparing for the BoE and while there are no actions expected, there is a nervous air surrounding markets in the build up to the EU referendum in Britain next month which will affect the G10's and risk sentiment in the markets.

BoE preview: a picture tells a thousand words

NZD/USD levels

NZD/USD remains in the vicinity of the 20 sma on the hourly chart at 0.6812 while the 20 sma on the 4hr chart located at 0.6791 would be the key support below the handle.

The bulls target the 200 sma on the 4hr at 0.6881 bringing the bulls back into the rising channel established in the Jan recovery while the double top would need to be broken on the 0.70 handle for a confirmation in the trend moving higher.