Interest rate differentials remain in favor of dollar strength. The recent improvement in the US data would only widen the spread in favor of USD.
Meanwhile, speculation of RBNZ rate cut in August is strengthening each passing day. Weak reported yesterday, lending restrictions to stem inflow into property investments have only added to rate cut calls. If milk prices dip at the GlobalDairyTrade (GDT) auction today, a rate cut in August would then become a done deal.
Overall, all the arguments suggest the pair is likely to complete the pattern by falling to point D located at 0.6557.