NZD/USD: 2 meetings ahead
NZD/USD was initially supported by the decision of the Turkish central bank to make an aggressive rate hike. However, the pair’s vulnerable to uncertainty ahead of the Fed’s decision (19:00 GMT) and the Reserve bank of New Zealand’s meeting (20:00 GMT).
There’s some speculation about a possible rate hike in New Zealand. However, consensus is that the RNBZ will keep benchmark rate at 2.50%. Note though that the regulator’s governor Graeme Wheeler may hint on plans to begin the tightening cycle in March. We’ll examine the prospects of the FOMC announcement in a different article.
Resistance is at $0.8295, $0.8345, $0.8400. Support is at $0.8245, $0.8215, $0.8178. As you may see from the chart the pair will soon have to move beyond either support or resistance.
Chart. Daily NZD/USD