NZD/USD consolidates daily gains near 0.6100 as focus shifts to RBNZ


  • NZD/USD struggles to preserve its bullish momentum on Tuesday.
  • Investors are waiting for RBNZ's monetary policy announcements. 
  • US Dollar Index looks to finish day in red below 100.

The risk-sensitive kiwi took advantage of the upbeat market mood during the first half of the day and the NZD/USD pair rose to a daily high of 0.6123. With the USD finding demand in the late American session, the pair lost its momentum and returned to 0.6100 area, where it was still up 0.3% on a daily basis.

On Monday, Chicago Fed President Evans said negative interest rates were unlikely to be used as a tool in the US. On the same note, Dallas Fed President Kaplan argued that negative interest rates' damage would outweigh the benefits. Additionally, Minneapolis Fed President Kashkari acknowledged that FOMC policymakers were "pretty unanimous" in their opposition against negative rates.

The US Dollar Index, which fell to a daily low of 99.66, staged a rebound on these comments and rose toward 100 to force the pair to reverse its direction.

Eyes on RBNZ

In the early trading hours of the Asian session, the Reserve Bank of New Zealand (RBNZ) will announce the monetary policy decisions. Markets expect the policy rate to remain unchanged at 0.25% and they will pay close attention to the policy guidance and possible changes to the QE program.

Previewing this event, "an expansion of QE to $60bn would be no great surprise to markets and would cause only a small market reaction,” said Westpac analysts. “In our preferred scenario of the RBNZ giving a ‘soft’ indication that it intends to keep the OCR at 0.25% until March 2021, but that it remains open to a cut after that, markets would move little.”

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6096
Today Daily Change 0.0019
Today Daily Change % 0.31
Today daily open 0.6077
 
Trends
Daily SMA20 0.6046
Daily SMA50 0.6031
Daily SMA100 0.6277
Daily SMA200 0.6339
 
Levels
Previous Daily High 0.6157
Previous Daily Low 0.6054
Previous Weekly High 0.6148
Previous Weekly Low 0.5994
Previous Monthly High 0.6176
Previous Monthly Low 0.5843
Daily Fibonacci 38.2% 0.6093
Daily Fibonacci 61.8% 0.6118
Daily Pivot Point S1 0.6035
Daily Pivot Point S2 0.5993
Daily Pivot Point S3 0.5932
Daily Pivot Point R1 0.6138
Daily Pivot Point R2 0.6199
Daily Pivot Point R3 0.6241

 

 

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