RBNZ Preview: what to expect of NZD/USD

The RBNZ meets later today, and market consensus expects the central bank to leave its monetary stance unchanged, with the key rate at 2.00% following the rate cut at the August meeting.

Regarding FX, NZD/USD remains on a positive 3-session streak, trading in multi-day tops and propped up almost exclusively by the recent weakness around the greenback. The Kiwi dollar has also found decent support around the 55-day sma in the 0.7230 region during last week after being rejected from fresh 2016 peaks near 0.7500 the figure posted on September 7.

In the near term, spot remains supported by the alrady mentioned 0.7230 area, home of recent lows and the 55-day sma. In case of a resumption of the leg lower, the next support emerges around the 0.7200 handle, level last seen in late August. On the other hand, there is nothing in terms of relevant resistance levels until the above mentioned 0.7487, 2016 tops.