NZD/USD subdued ahead of RBA, weighed by lower oil

NZD/USD is currently stabilizing having been under pressure after a double top at 0.7220 and the ongoing fading activity below 0.7200. 

Despite a fragile US dollar on the back of weaker PMI's and last week's GDP miss, oil (on further on supply concerns, WTI down 3.9% to a three-month low), has been weighing on the commodity bloc and left NZD/USD subdued for the latter part of the US session after the drop from form 0.7192 down to 0.7159. For the session ahead the market highlight will be the RBA decision. 

NZD/USD levels

Analysts at Westpac offered an outlook for NZD/USD 1-3 month:  "The uncertainty generated by Brexit plus further RBNZ easing should be negative for the NZD, although partly offset by a weaker US dollar near term. We target 0.69." For the meantime, the 50 sma on the 1hr chart at 0.7166 guards 0.7120, in line with the 100 sma at 0.7116 with the 200 sma lies at 0.7057. 0.7220 remains key upside target.