NZD/USD opened below 0.73 on election results and general subdued risk tone

Currently, NZD/USD is trading at 0.7323, down -0.23% on the day, having posted a daily high at 0.7328 and low at 0.7298.

NZD/USD has opened offered in early Asia on the back of NZ elections. The provisional results were National: 46% / 58 seats; Labour 35.8% / 45 seats; NZ First 7.5% / 9 seats; Greens 5.9% / 7 seats; ACT 0.5% / 1 seat. 

Within the next two or three days, Prime Minister Bill English will be talking to NZ First leader Winston Peters about forming a fourth term National-led government. 

RBNZ: Highly unlikely to alter the stance of monetary policy - Westpac

Markets this week will be keeping a close eye on China (recent S&P downgrade weighs), metals, N.Korean risks and the RBNZ. 

China: S&P rating cut shows concerns over debt - BBH

"The election may be over, but it will still be some time before we know the make-up of the new government," the analysts at Westpac explained, adding,  "in the meantime, signs of a slowdown in economic activity are continuing to mount. Consequently, we expect the RBNZ will stand pat this Thursday when it releases its September OCR review," 

NZD/USD levels 

Trading at 0.7317 currently, to the upside, a break of 0.7370 (9th Aug high), the momentum would solidify a bullish trend back towards 0.7522 and the YTD highs so long as there are closes on the 0.74 handle and beyond the post FOMC kneejerk highs of 0.7434.

To the downside, a break of 0.7300 and 0.7294, as the 23.6% Fib of 0.7132/0.7344 rally with a subsequent break of recent support at 0.7280, and then 0.7220, would expose 0.7195 as a recent low. 0.7127 is the June 6th low and 0.7100 is a key psychological level.