NZD/USD set to test 0.66, RBNZ looms

NZD/USD set to test 0.66, RBNZ looms
FXStreet (Mumbai) – NZD/USD keeps red in the European session, snapping two back-to-back sessions of gains, as markets favour the US currency over its OZ peer just ahead of Reserve Bank of New Zealand (RBNZ) cash rate statement due early Thursday.

NZD/USD rejected at 0.6645

Currently, the NZD/USD pair trades lower by -0.25% at 0.6607, testing lows reached at 0.6603 reached in the European morning. The Kiwi failed to sustain gains and fell back in to red in anticipation of rate-cut announcement by the RBNZ at its monetary policy meeting scheduled on Thursday.

The RBNZ is widely expected to cut the cash rate from 3.25% to 3.00% tomorrow, although some economists are putting a small chance on a 50-basis point cut, particularly after last week’s Fonterra Global Trade Auction (GDT) saw a further 10.7% drop in prices.

Moreover, the recovery in the US dollar versus its major peers further negatively impacted the NZD/USD pair. While weaker Aussie also contributed to the downside in its OZ neighbour. Meanwhile, the upcoming US existing home sales data may provide some impetus to the Kiwi pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6645 (Today’s High) levels and above which it could extend gains to 0.6700. To the downside immediate support might be located at 0.6550 (July 21 Low) below that at 0.6502 (July 20 Low) levels.
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NZD/USD set to test 0.66, RBNZ looms
Source: FXStreet