NZD/USD: bearish bias while capped by 20 and 50 4hr sma

Currently, NZD/USD is trading at 0.7156, down -0.14% on the day, having posted a daily high at 0.7178 and low at 0.7152.

NZD/USD has been trading in a choppy formation along the 4hr chart and battling against a downward trend that started after the first week of February for the 2017 highs of 0.7374. The greenback has been flexing its muscles with markets expecting three rate hikes this year while the RBNZ have ben jawboning the bird lower despite remaining upbeat on the NZ economy. 

US Dollar clings to gains near 101.60, FOMC on sight

The Governor  of the RBNZ, Wheeler, again warned about international risks (including US protectionism) and chided markets for pricing in a rate hike this year, noted analysts at Westpac, adding, "With inflation expected to lift only gradually, we see a very low probability that recent OCR cuts will be reversed any time soon. Market pricing for a rate hike by end- 2017 had been 100% in the early weeks of 2017 but is now back to about 50/50." We now await the FOMC minutes today to give us an indication of possible timings of a rate hike. 

NZD/USD levels

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.  NZD/USD is capped by the 4hr 50 and 20 sma's around 0.7180 with 0.7128 as the recent low guarding the 0.71 psychological level ahead of 0.7045 and 0.6880 on the wide. To the upside, a break through 0.7240 o the wide opens 0.7280 and the aforementioned Feb highs.