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10 Jun 2014
NZD/USD awaiting RBNZ on 0.85 handle
FXStreet (Guatemala) - NZD/USD is trading at 0.8510, up 0.21% on the day, having posted a daily high at 0.8528 and low at 0.8491.
NZD/USD is awaiting the key event this week in The RBNZ June decision which will come late in the US session tomorrow. Analysts at RBS explained that the RBNZ will release a post decision statement alongside the quarterly Monetary Policy Statement (MPS), which includes new forecasts for inflation, GDP, and the 90-day Bank Bill rate. “Amid a still-strong currency, softer than expected first quarter inflation, and falling dairy prices, we believe the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has currently priced in”.
To hike or not to hike?
The strategists at RBS said that they are against the consensus anticipating the RBNZ to leave rates unchanged at the June meeting, instead taking on a "wait and see" approach. Should the RBNZ indeed hike the OCR tomorrow, we see the risks to the signaling language in the press release and Governor Wheeler's press conference as leaning in the dovish direction.
NZD/USD Levels
Current price is 0.8512, with resistance ahead at 0.8524 (Daily Classic R1), 0.8526 (Daily 20 SMA), 0.8528 (Daily High), 0.8532 (Yesterday's High) and 0.8554 (Daily Classic R2). Next support to the downside can be found at 0.8508 (Hourly 20 EMA), 0.8502 (Daily Classic PP), 0.8501 (Weekly High), 0.8494 (Daily Open) and 0.8491 (Daily Low).
NZD/USD is awaiting the key event this week in The RBNZ June decision which will come late in the US session tomorrow. Analysts at RBS explained that the RBNZ will release a post decision statement alongside the quarterly Monetary Policy Statement (MPS), which includes new forecasts for inflation, GDP, and the 90-day Bank Bill rate. “Amid a still-strong currency, softer than expected first quarter inflation, and falling dairy prices, we believe the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has currently priced in”.
To hike or not to hike?
The strategists at RBS said that they are against the consensus anticipating the RBNZ to leave rates unchanged at the June meeting, instead taking on a "wait and see" approach. Should the RBNZ indeed hike the OCR tomorrow, we see the risks to the signaling language in the press release and Governor Wheeler's press conference as leaning in the dovish direction.
NZD/USD Levels
Current price is 0.8512, with resistance ahead at 0.8524 (Daily Classic R1), 0.8526 (Daily 20 SMA), 0.8528 (Daily High), 0.8532 (Yesterday's High) and 0.8554 (Daily Classic R2). Next support to the downside can be found at 0.8508 (Hourly 20 EMA), 0.8502 (Daily Classic PP), 0.8501 (Weekly High), 0.8494 (Daily Open) and 0.8491 (Daily Low).