NZD/USD: back below 0.72 ahead of RBNZ decision

FXStreet (Mumbai) - The NZD/USD pair trimmed its gains to trade at 0.7185 levels as the markets are evenly split on whether or not the RBNZ would cut its interest rates today.

Rejected at 0.7230

BOJ’s Kuroda and German Bund driven sell-off in the USD in the late Asian/early European session pushed the NZD/USD pair higher to 0.7230. However, fresh offers at the same ensured the pair fell back below 0.72 levels. The Kiwi was sold on account of expectations of an interest rate cut.

The currency pair is likely to remain volatile as we head into the RBNZ rate decision since the market is evenly split on the rate decision.

NZD/USD Technical Levels

The immediate resistance is seen at 0.7230, above which the pair could target 0.7260. On the other hand, a break below 0.7180 could drive the pair lower to 0.7121 (hourly 200-MA).

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