NZD/USD hovering around 0.6400, awaits RBNZ

By FXStreet FXStreet (Córdoba) – NZD/USD rose further after Wall Street opening bell and reached at 0.6424, the highest level since August 31st. The pair failed to hold above 0.6400 and pulled back. So far the retreated from the highs found support above 0.6390.

It was trading at 0.6395, up 0.95% for the day. On a day characterized by strong gains in stocks markets worldwide, the kiwi is the best performer among the most traded currencies.

NZD/USD eyes RBNZ

The pair is awaiting the interest rate decisions of the Reserve Bank of New Zealand (RBNZ) that is likely to generate volatility at 21:00 GMT. Market consensus is for another rate cut.

“The RBNZ’s estimate for real GDP and inflation are perhaps too high and lower forecasts are likely. NZD/USD is about 3.5% lower since the start of August so an expectation of easing in response to the upturn in financial market turmoil is probably in the price and a strong signal to ease again would be required to push the NZD/USD much lower still”, said Derek Halpenny, strategist at The Bank of Tokyo-Mitsubishi UFJ.
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Source:: FX Street