27 Jan 2015
NZD/USD flirts with 0.74 handle
FXStreet (Mumbai) - NZD/USD declined against the US dollar, inching towards fresh two and a half year lows reached in the previous session as increased bets over RBNZ’s less hawkish stance weighed on the kiwi.
Currently, the NZD/USD traded at fresh session lows of 0.7409, down -0.20% on the day, having previously posted day’s high at 0.7442. NZD/USD remains pressured ahead of Wednesday's Federal Open Market Committee meeting, which is expected to keep its slightly hawkish stance.
Moreover, traders also remain wary ahead of Thursday's interest rate decision from the Reserve Bank of New Zealand (RBNZ) which is set to be a main driver.
According to Westpac - RBNZ’s statement may read something along the lines of, "For now it is appropriate to leave the OCR at its current level of 3.5%."
While this would be a 'watering down' from the December Monetary Policy Statement which read, "Some further increase in the OCR is expected to be required at a later stage.", it is not completely removing the bank's tightening bias, and is certainly not opening up to rate cuts.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7442 and above which it could extend gains to 0.7500 levels. To the downside, immediate support might be located at 0.7400 levels and below that at 0.7329 levels
Currently, the NZD/USD traded at fresh session lows of 0.7409, down -0.20% on the day, having previously posted day’s high at 0.7442. NZD/USD remains pressured ahead of Wednesday's Federal Open Market Committee meeting, which is expected to keep its slightly hawkish stance.
Moreover, traders also remain wary ahead of Thursday's interest rate decision from the Reserve Bank of New Zealand (RBNZ) which is set to be a main driver.
According to Westpac - RBNZ’s statement may read something along the lines of, "For now it is appropriate to leave the OCR at its current level of 3.5%."
While this would be a 'watering down' from the December Monetary Policy Statement which read, "Some further increase in the OCR is expected to be required at a later stage.", it is not completely removing the bank's tightening bias, and is certainly not opening up to rate cuts.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7442 and above which it could extend gains to 0.7500 levels. To the downside, immediate support might be located at 0.7400 levels and below that at 0.7329 levels