Kiwi dollar traders are preparing for a busy day on Wednesday with the Reserve Bank of New Zealand set to make a key interest rate update midway through the Asian trading session. The event is very much a ‘live’ call for financial markets with economists split down the middle as to whether the central bank will hike by 25 basis points or keep the Official Cash Rate at 2.25%. Traders are expecting to see some big moves in the NZDUSD whatever the outcome as the market reprices interest rate expectations on the back of the update as well as any fresh forward guidance delivered in the statement and subsequent press conference.
The Kiwi is looking nicely set up from a technical perspective for trading either way the RBNZ decides to go with it just above recent annual lows that now provide good support levels. If we do see a 25-basis point hike then traders will be able to leverage off those close support levels for long positions, whilst a hold is likely to see them challenged in short order with bears looking to trade a break to then move down towards longer term support levels. Initial resistance for traders looking to engage long positions now comes in around 0.5820 with the 200-day moving average with longer term resistance up around the 0.5970 area.
Resistance 2: 0.5969 – Trendline Resistance
Resistance 1:0.5820 – 200 Day Moving Average
Support 1: 0.5625 – 2026 Low
Support 2: 0.5562 – Long Term Trendline Support
The accuracy, completeness and timeliness of the information contained on this site cannot be guaranteed. IC Markets Global does not warranty, guarantee or make any representations, or assume any liability regarding financial results based on the use of the information in the site.
News, views, opinions, recommendations and other information obtained from sources outside of www.icmarkets.com, used in this site are believed to be reliable, but we cannot guarantee their accuracy or completeness. All such information is subject to change at any time without notice. IC Markets Global assumes no responsibility for the content of any linked site.
The fact that such links may exist does not indicate approval or endorsement of any material contained on any linked site. IC Markets Global is not liable for any harm caused by the transmission, through accessing the services or information on this site, of a computer virus, or other computer code or programming device that might be used to access, delete, damage, disable, disrupt or otherwise impede in any manner, the operation of the site or of any user’s software, hardware, data or property.
