The 0.6600 handle is proving to be asking too much of buyers at the moment
Buyers made an attempt to crack above the 0.6600 level earlier in the day but ultimately came up short once again as resistance from the 61.8 retracement level @ 0.6594 and offers around the 0.6600 handle helped to limit gains on the day.
The rejection at the key levels above has seen price now start to slip with the kiwi paring all of its earlier gains against the dollar falling to a low of 0.6572 on the day.
Although the yen has yet to respond to the turnaround in risk sentiment, it could be one of the reasons weighing on the kiwi and aussie in the last hour as commodity currencies start to slip on the day. E-minis are now at session lows as well, down by 0.3% on the day after having traded up by 0.2% in early European trading.
As for NZD/USD, if the minor support at 0.6560 gives way I would expect a test of the 100-hour MA @ 0.6543 to come. It’s a familiar story of failings for the kiwi as it can only rely on positioning data to rally in a time when the trading theme remains «one step forward, two steps back» against the dollar.