Kiwi dollar was the top loser of the Asian session, falling around 100 pips after Reserve Bank of New Zealand imposed fresh curbs in housing market, a move seen signaling rate cut in next month’s meeting. Kiwi dollar remains in steep near-term downtrend vs the greenback, approaching strong support zone at 0.7000 / 0.6960.

The US dollar eases from fresh high at 106.30 against Japanese yen, as investors booked profits on recent rally, triggered by renewed risk appetite that gained around 6% on acceleration from 100.00 support. Profit-taking action might delay rally, which looks for test of next strong resistances at 106.67/78.
Traders are betting that the Bank of Japan will further ease policy on its July 28-29 meeting, as the government prepares new fiscal stimulus to boost the economy.
The Euro was flat in late Monday’s / early Tuesday’s trading, holding within narrow range, awaiting ZEW reports, one of key releases of European session.

Sterling is back to 1.3200 support zone, following Monday’s failure to sustain attempts above 1.3300 barrier, awaiting UK’s inflation data.

Spot gold holds above fresh lows at $1320 zone, reached on risk-averse sentiment, keeping focus at world’s central bank policies.

Highlights of the day

Europe
UK inflation data are the first highlight of European session, due at 08:30 GMT. Analysts are expecting y/y CPI to tick higher to 0.4% from 0.3% in May, still well below BoE’s target rate at 2%
Monday’s calendar is light, with BoE’s MPC member due speak at 08:15GMT and German BUBA monthly report at 10:00 GMT being the highlights of European session.

German ZEW data are due at 09:00, with forecasted 8.2 in July, after unexpected rise to 19.2 in June from May’s 6.4 release. The German economic sentiment indicator is expected to fall on Brexit concerns.
America
US Building permits are expected to tick higher in June, on forecasted 1.15M, compared to May’s 1.14M release, while Housing Starts are also expected to rise to 1.17M in June, from May’s 1.16M release.
Data are due at 12:30 GMT.

Important levels

NZDUSD
The pair is in steep descend from 0.7323 peak, for the fifth consecutive day. Overnight’s strong bearish acceleration took out important support at 0.7075 (Fibo 38.2% of 0.6673/0.7323 ascend, heading towards strong support one at 0.7000/6960 (24 June trough / daily cloud top), break of which would expose 0.6920/10 supports (Fibo 61.8% / daily cloud base).
Initial resistances lay at 0.7066/7, ahead of session high at 0.7113.
GBPUSD

Slides below 1.3200 support, after recovery rejection at 1.3312 on Monday. Near-term technicals are negative and favor return to strong supports at 1.3130/00. Daily Tenkan-sen line, currently at 1.3163, marks good support for now and break here would signal fresh weakness.
Initial resistance lies at 1.3272, ahead of 1.3312, and only break here would sideline current downside risk.
USDJPY
Near-term action consolidates under fresh high at 106.30, with overall bullish sentiment being in play and suggesting further recovery, on renewed risk-appetite. Above 106.30, immediate barriers lay at 106.67/7 (Fibo 61.8% of 111.43/98.98 downleg / 24 June lower top, above which to trigger further upside.
Today’s price action was so far contained at 105.63, which guards yesterday’s low at 105.25, also broken 50% retracement level.

 , Market Analysis