NZD/USD Technical Analysis: Bull RSI divergence on 4H, yield differential hits 3-month low ahead of RBNZ

The NZD/USD pair is currently trading at 0.6740, having hit a session high of 0.6746 soon before press time. 

The RBNZ is widely expected to keep rates unchanged today and join the dovish chorus of other central banks. The markets have likely priced in the dovish turn, the recent slide in yield differentials indicates. 

The spread between the New Zealand 10-year government bond yield and its US counterpart fell to -0.592 basis points earlier today, the lowest level since Nov. 5. Notably, the spread stood at -0.22 basis points on Jan. 4 and was seen at -0.356 on Jan. 30. 

The NZD, therefore, could pick up a bid if the RBNZ matches market expectations. Validating that bullish case is the positive divergence of the relative strength index (RSI) seen in the chart below. 

4-hour chart

The bullish divergence would be invalidated if RBNZ sounds more dovish than expected, sending the pair below 0.6720. 

Trend: neutral

NZD/USD

Overview:
    Today Last Price: 0.6740
    Today Daily change: 3 pips
    Today Daily change %: 0.01%
    Today Daily Open: 0.6739
Trends:
    Daily SMA20: 0.6805
    Daily SMA50: 0.6791
    Daily SMA100: 0.6726
    Daily SMA200: 0.6755
Levels:
    Previous Daily High: 0.6745
    Previous Daily Low: 0.6719
    Previous Weekly High: 0.6907
    Previous Weekly Low: 0.6729
    Previous Monthly High: 0.694
    Previous Monthly Low: 0.6516
    Daily Fibonacci 38.2%: 0.6735
    Daily Fibonacci 61.8%: 0.6729
    Daily Pivot Point S1: 0.6724
    Daily Pivot Point S2: 0.6708
    Daily Pivot Point S3: 0.6698
    Daily Pivot Point R1: 0.675
    Daily Pivot Point R2: 0.676
    Daily Pivot Point R3: 0.6776

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.

EUR/USD News

GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.

GBP/USD News

USD/JPY off-highs, but stays above 200-day MA

USD/JPY is enjoying good two-way price movements, with the upside capped by the risk-off trades in the Asian equities and Yen flows ahead of the 10-day holiday while the downside remains cushioned by mixed Japanese macro data and renewed optimism over the US-China trade deal. 

USD/JPY News

US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News

Majors

Cryptocurrencies

Signatures