FXStreet (Córdoba) – The Reserve Bank of New Zealand will decide on monetary policy early during the Asian session at 20:00 GMT.
The RBNZ has already cut its key interest rate three times since June, from 3.5% to current 2.75%, to curb the effects of the slump in export prices and to weaken the New Zealand dollar. As for today’s decision, analysts are split on whether the RBNZ will ease its policy further although consensus favors an on-hold meeting.
NZD/USD levels to watch
A surprise rate cut will send the NZD/USD tumbling with 0.6565 (50% Fibo retracement of 0.6236-0.6898) as first bearish target, followed by 0.6500 (psychological level/50-day SMA) and then 0.6385 (monthly low Oct 2015).
The upside potential seems more limited in case the central bank decides to stand pat on rates. Immediate resistance is seen at 0.6775 (Oct 28 high) followed by 0.6813 (Oct 27 high) , 0.6865 (Oct 23 high) and finally 0.6897/0.6900 (4-month high Oct 15/psychological level).
(Market News Provided by FXstreet)