NZD/USD Price Analysis: Renews seven-week high above 0.6300 as RBNZ Interest Rate Decision looms
|- NZD/USD picks up bids to refresh multi-day high during three-day uptrend.
- Clear upside break of 0.6300 resistance confluence directs bulls towards 61.8% Fibonacci retracement level.
- RBNZ is up for consecutive 11th rate hike but future guide will be crucial to watch for clear directions.
NZD/USD marches to the highest levels since mid-February as the Kiwi pair traders await the Reserve Bank of New Zealand (RBNZ) monetary policy decision on early Wednesday. That said, the quote rises to 0.6323 by the press time.
It’s worth noting that the RBNZ is expected to announce the 11th consecutive rate hike, worth 0.25% this time, and can keep the NZD/USD buyers hopeful. However, the receding hawkish bias highlights the RBNZ Rate Statement as the key catalyst to watch for clear directions.
Also read: RBNZ Interest Rate Decision Preview: Hawkish guidance yet again?
In doing so, the major currency pair justifies the previous day’s upside break of the 100-DMA and a five-week-old ascending trend line, around 0.6300.
Not only the RBNZ rate hike and the NZD/USD breakout but the bullish MACD signals and upbeat RSI (14), not overbought, also favor the Kiwi pair buyers as they approach the 61.8% Fibonacci retracement level of its February-March fall, around 0.6365.
However, the quote’s further upside appears to have a bumpy road as multiple levels near 0.6400 and 0.6415-20 can test the bulls before directing them to the Year-To-Date high of around 0.6540, marked in February.
Alternatively, the 50% Fibonacci retracement level of 0.6310 and the aforementioned resistance-turned-support of 0.6300 restrict the short-term downside of the NZD/USD pair.
Following that, a one-month-old ascending support line, near 0.6230 by the press time, will gain the market’s attention.
NZD/USD: Daily chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.