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9 Dec 2014
NZD/USD retakes 0.77 handle ahead of the RBNZ rate decision
FXStreet (Mumbai) - The Kiwi has posted a sharp recovery from the day’s low against the greenback ahead of the Reserve Bank of New Zealand (RBNZ) meet tomorrow, where the central bank is expected to hold overnight cash rates unchanged.
The NZD/USD now trades 0.81% higher at 0.7716 levels, after having recovered from the low of 0.7609 levels. The kiwi has been under pressure on falling dairy prices. The weakness in both oil and dairy prices has already pushed the inflation in New Zealand at the bottom of its target range of 1% to 3%. Hence, governor Wheeler is widely expected to signal a prolonged pause in rate hikes tomorrow.
The Kiwi still rose against the greenback, which has weakened against most of the currencies due to the weakness in the treasury yields. Moreover, on a relative basis the NZD remains supported by expectations of rate hikes beyond 3.5% in 2015.
NZD/USD Technical levels
The pair has an immediate resistance at 0.7740, above which gains could be extended to 0.7766. Meanwhile, support is seen at 0.7693 and 0.7660 levels.
The NZD/USD now trades 0.81% higher at 0.7716 levels, after having recovered from the low of 0.7609 levels. The kiwi has been under pressure on falling dairy prices. The weakness in both oil and dairy prices has already pushed the inflation in New Zealand at the bottom of its target range of 1% to 3%. Hence, governor Wheeler is widely expected to signal a prolonged pause in rate hikes tomorrow.
The Kiwi still rose against the greenback, which has weakened against most of the currencies due to the weakness in the treasury yields. Moreover, on a relative basis the NZD remains supported by expectations of rate hikes beyond 3.5% in 2015.
NZD/USD Technical levels
The pair has an immediate resistance at 0.7740, above which gains could be extended to 0.7766. Meanwhile, support is seen at 0.7693 and 0.7660 levels.