- NZD/USD extends previous gains as USD remains heavy.
- The RBNZ is on track to raise OCR by 50 basis points at its May policy meeting.
- Mixed news out of China caps NZD bulls as investors turn cautious.
The NZD/USD has hit fresh three-week highs at 0.6476 during the Asian session on Monday, before entering consolidation mode ahead of the European open.
The NZD/USD rally could be related to a combination of factors as we head into the week of the Reserve Bank of New Zealand (RBNZ) monetary policy meeting.
NZD bulls remain hopeful amid expectations of a 50bp rate hike by the RBNZ this Wednesday. The latest report published by the New Zealand Institute of Economic Research (NZIER) revealed that “the majority opinion among Shadow Board members was that the official cash rate (OCR) should be increased by 50 basis points at the May meeting“.
The NZD/USD pair also benefited from the general decline in the US dollaras investors continued to trim their bullish bets on the dollar, extending the correction that had already occurred from two-decade highs.
Besides, regime change in Australia, with a Labor Party-led government now in power, also fueled optimism around the Antipodes. Meanwhile, New Zealand Prime Minister Jacinda Ardern is reported to lead a trade delegation to the United States this week.
Although the Mixed news on the coronavirus coming from the Chinese capital, Beijing, kept investors on edge. Earlier in the Asian session, it was reported that the city had registered a record of covirus cases. But later, the South China Morning Post (SCMP) reported, citing sources, that Beijing was considering relaxing quarantine policy amid investor angst.
All eyes are now on the outcome of Wednesday’s RBNZ currency policy for the next big NZD move. Until then, the broader market tone and dollar price action will continue to be the main catalysts.
NZD/USD technical levels
NZD/USD
Panorama | |
---|---|
Last Price Today | 0.6462 |
Today’s Daily Change | 0.0071 |
Today’s Daily Change % | 1.11 |
Today’s Daily Opening | 0.6391 |
Trends | |
---|---|
20 Daily SMA | 0.6404 |
50 Daily SMA | 0.6679 |
100 Daily SMA | 0.6704 |
200 Daily SMA | 0.6838 |
levels | |
---|---|
Previous Daily High | 0.6415 |
Previous Daily Minimum | 0.6363 |
Previous Maximum Weekly | 0.6417 |
Previous Weekly Minimum | 0.6229 |
Monthly Prior Maximum | 0.7035 |
Previous Monthly Minimum | 0.6451 |
Daily Fibonacci 38.2% | 0.6395 |
Daily Fibonacci 61.8% | 0.6383 |
Daily Pivot Point S1 | 0.6364 |
Daily Pivot Point S2 | 0.6337 |
Daily Pivot Point S3 | 0.6312 |
Daily Pivot Point R1 | 0.6416 |
Daily Pivot Point R2 | 0.6442 |
Daily Pivot Point R3 | 0.6469 |
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.