NZD/USD: unable to break the 0.72 barrier, Comey a potential catalyst?

Currently, NZD/USD is trading at 0.7193, down -0.03% on the day, having posted a daily high at 0.7198 and low at 0.7192.

NZD/USD has moved into a sideways channel and a chop for the o/n sessions. The bird was consolidating within a 25 pip range between 0.7181 and 0.7205 unable to find momentum on the 0.72 handle. 

Forex today: US turns risk-on ahead of Super Thursday trio risk events  

"The NZD/USD continues to bounce off resistance at 0.72 despite a generalised climb in the USD overnight. Most everything locally is running in the NZD’s favour, with the terms of trade flirting with record highs and the economic cycle maintaining its momentum. Volatility is more likely to be generated at the USD end of the equation," explained analysts at ANZ.

The analysts also noted the following risk event for the greenback in the forthcoming US session tonight, "
 Former FBI Director James Comey will testify to the Senate committee – headlines are already being generated from the publication of his testimony on the Senate website. Any further negative headlines for US President Trump will cause markets to negatively reassess the likelihood of his policy agenda – of most interest for markets, tax and regulatory reform – passing." 

NZD/USD levels

The bird broke 0.7150 key resistance recently and has based downside price action at 0.7169 while failing at the 0.7205 highs. Significantly, a break through of the 0.72 level with closes would bring in prospects for a recovery back to test 0.7240/55 resistance. To the downside, 0.7145 and break back below 0.7080/90 as previous resistance.