NZDUSD sets up for rate decision later this week

Technical Analysis

Target range

The Reserve Bank of New Zealand will meet and announce their rate decision on Wednesday morning in New Zealand (8 PM ET in the US. The expectations are for central bank to keep rates unchanged but to keep the door open for potential tightening in order to bring inflation back down toward the 1 – 3%.

Technically, the pair moved down in the early US session and in the process moved down to test the 38.2% of the move down from the end of December high. That level comes in at 0.61637 and will be a close support area for the pair going forward. Stay above, and the buyers are in firm control. Move below with momentum, and there could be some disappointment.

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