NZD/USD struggles to find direction, trades around 0.6970 ahead of RBNZ


  • NZD/USD is fluctuating in a relatively tight range on Tuesday.
  • RBNZ is expected to hike its policy rate by 25 basis points.
  • US Dollar Index clings to modest daily gains, stays below 94.00.

The NZD/USD pair is having a hard time making a decisive move in either direction on Tuesday as investors remain on the sidelines while waiting for the Reserve Bank of New Zealand (RBNZ) to announce its policy decisions. As of writing, the pair was up 0.1% on the day at 0.6969.

RBNZ expected to raise policy rate to 0.5%

Although the positive shift witnessed in risk sentiment is helping NZD/USD stay afloat in the positive territory, the modest USD strength is limiting its upside. Supported by a 3% jump in the benchmark 10-year US Treasury bond yield, the US Dollar Index clings to modest daily gains around 93.90.

Earlier in the day, the data from the US showed that the economic activity in the service sector continued to expand at a relatively strong pace in September with the ISM Services PMI edging higher to 61.9 from 61.7 in August. On the other hand, the GDT Price Index remained unchanged following the bi-weekly auction in New Zealand.

The RBNZ is expected to hike its policy rate by 25 basis points to 0.5% on Wednesday and the market reaction is likely to be muted in case that scenario materializes. However, if the bank decides to delay the rate hike, the NZD could come under strong bearish pressure. Nevertheless, given heightened inflation risks, the RBNZ is unlikely to stay on hold. On the flip side, a bigger-than-expected rate increase could trigger a rally in NZD/USD.

RBNZ Preview: Forecasts from seven major banks, set for the first hike since the pandemic.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6969
Today Daily Change 0.0005
Today Daily Change % 0.07
Today daily open 0.6964
 
Trends
Daily SMA20 0.7033
Daily SMA50 0.701
Daily SMA100 0.7048
Daily SMA200 0.7111
 
Levels
Previous Daily High 0.6984
Previous Daily Low 0.6926
Previous Weekly High 0.7034
Previous Weekly Low 0.6859
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.6962
Daily Fibonacci 61.8% 0.6948
Daily Pivot Point S1 0.6932
Daily Pivot Point S2 0.69
Daily Pivot Point S3 0.6874
Daily Pivot Point R1 0.699
Daily Pivot Point R2 0.7016
Daily Pivot Point R3 0.7048

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures