NZD/USD: quiet start to week, in positive territory, target 0.7185

• NZD/USD: remains in positive territory despite losing 0.79 handle. 
• NZD/USD: US dollar and yields pressured, opens 0.7185 target. 

NZD/USD started out the week stable in and around a few pips of Friday's closing price. Currently, NZD/USD is trading at 0.7082 and remains robust looking largely in part due to the wobble in the dollar. 

The greenback was more consolidative at the end of the week as US yields fell over and long covering played out its part in the commodity FX space. The Kiwi started the NY session out at 0.7060 but recovered after a sharp US data related drop from 0.7040 to 0.7080 late in the day.  

Markets in a snap-shot: US consolidates - ANZ

Eyes on US yields

US GDP rose at an annualised pace of 2.3% supported by gross private investment, inventories, government spending and less drag from net exports. PCE was also a beat, but US yields were the main story and the benchmark can't convince on the 3.00% handle. 

"The kiwi remains on the back-foot, with stretched positioning still likely to leave it vulnerable to downside tests," analysts at ANZ argued. 

NZD/USD levels

Daily RSI diverges on the new low and a bull hammer formed, so the market could be looking for a short squeeze while the border trend remains bearish and rallies likely to hit a road block. Longer-term techs still suggest lower levels, rallies likely to be sold still. The bears can target 0.7055 and 0.7030. To the upside, 0.7150 guards 0.7185 resistance.