NZD/USD Slides Further Ahead of the Fed and RBNZ
Expectations that RBNZ might discuss prospects of a rate-cut during its monetary policy meeting on Thursday dragged the NZD/USD pair lower below 0.6850 level.
Although
the Fed, due to announce its monetary policy decision later during the
day, is expected to hold its key interest rates unchanged, it could
still provide some hint towards the timing of next rate-hike decision.
The expectations of diverging monetary policy actions between the Fed
and RBNZ is likely continue exerting pressure on the NZD/USD pair in the
near-term.
Technical levels to watch
The
pair has just managed to hold a short-term ascending trend-line support
near 0.6835 area, which if broken seems to open room for an immediate
slide towards 0.6800 round figure mark. The downfall could further get
extended towards its next major support near 0.6765-60 area, nearing
38.2% Fibonacci retracement level of 0.6347-0.7054 up-swing.
Meanwhile,
a bounce-back from the ascending trend-line support and a subsequent
strength above 0.6870 intermediate minor resistance seems to assist the
pair towards reclaiming 0.6900 round figure mark. A sustained strength
above 0.6900 mark handle has the potential to continue boosting the pair
towards 0.6965-70 strong horizontal resistance.
