NZDUSD speculative positioning is a bit stretched.... this creates room for downside. The dairy auction today in new zealand showed prices dropping 8% after dropping significantly over the last 4 auctions as well... This on top of Chinese data coming in weak could give us catalyst for more downside. Later this week the ISM and NFP data are going to be released which is expected to come in strong after recovering a bit from an exceptionally harsh winter. This should help the USD recover some ground.