12 May 2015
NZD/USD: recovery capped by 0.7400
FXStreet (Córdoba) - NZD/USD managed to recover some ground on Tuesday despite growing expectations the Reserve Bank of New Zealand would cut rates next month.
The kiwi took advantage of broad USD weakness and moved off a 2-month low of 0.7327, but failed to overcome the 0.7400 mark and came under mild pressure. At time of writing, NZD/USD is trading at the 0.7360 zone, still 0.40% above its opening price.
The RBNZ will issue its Financial Stability Review on Wednesday and investors will be looking for signs that the central bank is leaning towards easier policy. The RBNZ has room to cut rates after four 25 bps hikes to 3.5% in 2014.
NZD/USD technical levels
In terms of technical levels, NZD/USD could find immediate supports at 0.7327 (daily low), 0.7300 (psychological level) and 0.7274 (Mar 18 low). On the other hand, resistances are seen at 0.7400 (psychological level/daily high), 0.7430 (100-hour SMA) and 0.7465 (May 11 high).
The kiwi took advantage of broad USD weakness and moved off a 2-month low of 0.7327, but failed to overcome the 0.7400 mark and came under mild pressure. At time of writing, NZD/USD is trading at the 0.7360 zone, still 0.40% above its opening price.
The RBNZ will issue its Financial Stability Review on Wednesday and investors will be looking for signs that the central bank is leaning towards easier policy. The RBNZ has room to cut rates after four 25 bps hikes to 3.5% in 2014.
NZD/USD technical levels
In terms of technical levels, NZD/USD could find immediate supports at 0.7327 (daily low), 0.7300 (psychological level) and 0.7274 (Mar 18 low). On the other hand, resistances are seen at 0.7400 (psychological level/daily high), 0.7430 (100-hour SMA) and 0.7465 (May 11 high).