FXStreet (Mumbai) – The New Zealand remains heavily offered against its American counterpart in the mid-European session, knocking-off NZD/USD to fresh session lows on the 0.71 handle. The Kiwi keeps losses after the RBNZ consultation paper proposed new measures aimed at dealing with Auckland’s rapid inflation, which spurs rate cut bets ahead of next week’s central bank meeting.
NZD/USD rejected at 0.72
Currently, the NZD/USD pair trades lower by -0.58% at fresh session lows of 0.7136, snapping previous gains. NZD/USD resumed its downtrend after a brief reversal seen earlier this week as the NZD came under renewed pressure after RBNZ’s latest proposal to curb rising inflation in Auckland fuelled rate cut bets ahead Reserve Bank of New Zealand (RBNZ) policy decision next week.
The RBNZ announced new policy measures aimed at tackling Auckland’s rapid house-price inflation in May, and today released a consultation paper outlining the potential impact of the new measures.
Looking ahead, traders now turn their attention towards a fresh set US economic data due to released later in the US session.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7200 levels and above which it could extend gains to 0.7274. To the downside immediate support might be located at 0.7100 levels below that at 0.7065 (June 1 Low) levels.
(Market News Provided by FXstreet)