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22 Apr 2014
NZD’s RBNZ anticipations see it take flight
FXStreet (Guatemala) - Currently, NZD/USD is trading at 0.8597, up 0.33% on the day, having posted a daily high at 0.8622 and low at 0.8563.
Strategists at RBS noted that the RBNZ is widely expected to hike the OCR for a second consecutive month, bringing it back to 3.0% for the first time since the RBNZ cut the OCR 50bp in March 2011 in response to the Christchurch earthquake. “We expect the inflation and rates outlook to be largely unchanged. Economic indicators continue to point to broad strength in activity, though a slightly softer than anticipated inflation report and the still strong NZD may play an offsetting role in the inflation outlook. The RBNZ will not give new inflation forecasts at tomorrow's meeting – a new Monetary Policy Statement with updated forecasts will be released at the June meeting”.
RSI neutral
Meanwhile, daily RSI is in neutral territory at 47.79. On the hourly NZD/USD chart, the 200 SMA is declining and currently at 0.8580, down from the previous hour close at 0.8626.
NZD/USD Levels
With spot trading at 0.8598, we can see next resistance ahead at 0.8603 (Yesterday's High), 0.8605 (Daily 20 SMA), 0.8612 (Weekly Classic PP), 0.8622 (Daily High) and 0.8624 (Daily Classic R2). Support below can be found at 0.8596 (Daily Classic R1), 0.8593 (Hourly 20 EMA), 0.8590 (Hourly 100 SMA), 0.8576 (Daily Classic PP) and 0.8573 (Daily Open). Looking to candlestick patterns, we can see a Piercing Line formation on the 1-hour chart.
Strategists at RBS noted that the RBNZ is widely expected to hike the OCR for a second consecutive month, bringing it back to 3.0% for the first time since the RBNZ cut the OCR 50bp in March 2011 in response to the Christchurch earthquake. “We expect the inflation and rates outlook to be largely unchanged. Economic indicators continue to point to broad strength in activity, though a slightly softer than anticipated inflation report and the still strong NZD may play an offsetting role in the inflation outlook. The RBNZ will not give new inflation forecasts at tomorrow's meeting – a new Monetary Policy Statement with updated forecasts will be released at the June meeting”.
RSI neutral
Meanwhile, daily RSI is in neutral territory at 47.79. On the hourly NZD/USD chart, the 200 SMA is declining and currently at 0.8580, down from the previous hour close at 0.8626.
NZD/USD Levels
With spot trading at 0.8598, we can see next resistance ahead at 0.8603 (Yesterday's High), 0.8605 (Daily 20 SMA), 0.8612 (Weekly Classic PP), 0.8622 (Daily High) and 0.8624 (Daily Classic R2). Support below can be found at 0.8596 (Daily Classic R1), 0.8593 (Hourly 20 EMA), 0.8590 (Hourly 100 SMA), 0.8576 (Daily Classic PP) and 0.8573 (Daily Open). Looking to candlestick patterns, we can see a Piercing Line formation on the 1-hour chart.