NZD/USD: bulls taking charge ahead of RBNZ later in week

By FXStreet FXStreet (Guatemala) – NZD/USD is on the bid as the Asian session moves along with a break of the very near-term resistance of the US afternoon session, targeting 0.6780.

NZ are out on labour day and focus remains with the commodities and US data that comes later in the week, while the RBNZ will have the final say as to the direction of the bird.

The RBNZ is not likely to act, according to the general market consensus, but there is the possibility of a rate cut with lower q/q inflation and based upon the recent statement from Wheeler when he said, “Some further easing in the OCR seems likely, but this will continue to depend on the emerging flow of economic data.”

NZD/USD levels

Technically, while trading below the cluster of MA’s on the hourly, the 20 DMA comes as next bearish target at 0.6644. The recent 0.6700 low seen last week may still be the last stop before 0.6640, daily 20 DMA ahead of 0.6236/20 21st August lows. To the upside, a break of the 200 SMA on the hourly chart will challenge last week’s closing downtrend to trade at 0.6865 the high, exposing October’s highs of 0.6897.
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Source:: FX Street