NZD/USD was rejected at day's highs by 0.6661, but remains supported above daily cloud (currently spanning 0.6534-0.6615).
- Weakness only below 0.6580 (trendline resistance), pair could then test next support at 0.65 levels.
- Markets seem to have intensified expectations for the RBNZ to cut OCR this year, following a slump in NZ business confidence and inflation expectations.
- There is scope for RBNZ to ease twice this year, but markets have fully priced in only one cut, making further downside vulnerable.
- Doji formation seen on Monday's candle, pair faded minor-recovery attempts and was rejected at highs at 0.6661 to currently trades around 0.6634 levels.
- We expect the pair to continue trading sideways for the week in the range 0.6745-0.6565
