NZD/USD headed for a test below 200-hourly SMA

• NZD/USD bias is bearish with eyes for a break below the 200-hourly SMA.
• NZD/USD unwinds as the market's exit long high beta on lower global yields. 
• GDT price index slipped for the third consecutive auction.

NZD/USD has been pressured on the back of a loss of appetite for the carry in a lower yielding global backdrop where there was an unwind in the higher beta's overnight. Currently, the bird is trading at 0.6904, down -0.01% on the day, having posted a daily high at 0.6910 and low at 0.6898.

• Dairy prices slipped for the third consecutive GDT auction - ANZ

NZD/USD ranged between 0.6891 and 0.6954, closing at 0.6905. Copper's slide of -2.1% did not help the case for bulls for both pairs while milk prices weighed specifically on the bird. Analysts at ANZ explained that the dairy prices slipped for the third consecutive GDT auction overnight, with the GDT-TWI falling 3.5% and WMP dropping 5.5%. 

As for the greenback, the DXY ended +0.14% at 94.92 on the US session while rates on the other hand for the 10-year yields dropped -0.16% to close at 2.3127% within a range of between 2.3019% - 2.3379%.  

Focus turns to the RBNZ on Thursday

Eyes now look ahead to the RBNZ where analysts at Westpac expect the Central Bank to keep the OCR on hold at 1.75% at Thursday's Monetary Policy Statement, and to repeat the previous guidance. "This is market-neutral, but there's a small risk of a dovish outcome."

NZD/USD levels

The Daily RSI biased down and here is a pricing bearish towards the 200 hourly SMA at 0.6887 that is sitting below the 10-D SMA at 0.6894. These levels align with the 200-Month SMA as well. On the upside, the 21-D SMA at 0.6999 is the key target ahead of 0.7054.