NZD/USD Price Analysis: Renews seven-week high above 0.6300 as RBNZ Interest Rate Decision looms

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 11^th 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