The NZD/USD pair started the week by moving lower but then unwound a lot of this move as the day progressed. All eyes in the coming days will be on the Reserve Bank of New Zealand to see if it can meet the market’s expectations for hikes, economists at ANZ Bank report.
The key factor this week will be the RBNZ meeting
“A lot of focus is likely to be on rates markets again this week to see whether there is a further unwind of the recent rally in US Treasuries.”
“Given how far market pricing has already moved, it may be difficult for the RBNZ to ‘out-hawk’ the market. As such, it may be difficult for the RBNZ decision to generate a large move in the kiwi unless there is a large shift in the language.”
“Support 0.6900/0.6940 Resistance 0.7100/0.7230”
