NZD/USD: all eyes on RBNZ
The Reserve Bank of New Zealand will announce its interest rate decision today at 21:00 GMT. The central bank is expected to keep the benchmark rate unchanged at 2.5%. Last month the RBNZ governor Graeme Wheeler announced some tools which might let him keep interest rates lower for longer while reacting to the bubbling housing market without fuelling demand for what he calls an overvalued currency.
Analysts at ASB Institutional think that Wheeler will talk NZD down. If, however, he doesn’t do that, NZD/USD may jump to $0.8200.
NZD/USD has been steadily rising since the beginning of September. In the short-term kiwi is overbought. The pair closed above $0.8050 yesterday. Resistance is at $0.8100, $0.8137, $0.8162 and $0.8185. Support at $0.8050, $0.8005, $0.7990.
График. H4 NZD/USD