FXStreet (Mumbai) – The New Zealand retains gains versus its American counterpart from Tokyo open, now pushing NZD/USD towards 0.72 barrier. The Kiwi remains well bid in Asia mainly driven by greenback weakness across the board while traders unwind their positions ahead of RBNZ rate decision due tomorrow.
NZD/USD eyes 0.7200
Currently, the NZD/USD pair trades higher by 0.25% at 0.7149, retreating from session highs reached at 0.7159. NZD/USD rebounded higher after a mixed close in the previous session as traders resorted to profit-taking and liquidated their positions heading in to Reserve Bank of New Zealand’s monetary policy announcement tomorrow.
The RBNZ is likely to keep the OCR on hold when the board meets on Thursday, while the accompanying Monetary Policy Statement will provide fresh cues on future course of monetary policy outlook.
On Tuesday, The kiwi ended on a choppy note weighed down by discouraging Chinese consumer and producer prices pressures data which sparked concerns about deflation and waning external demand from China. China is the top export destination of New Zealand.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7184 (June 9 High) levels and above which it could extend gains 0.7200 levels. To the downside immediate support might be located at 0.7101 (June 4 Low) below that at 0.7085 (June 9 Low) levels.
(Market News Provided by FXstreet)