The Reserve Bank of New Zealand (RBNZ) is set to hold a meeting next week, with expectations running high for a significant 50 basis point interest rate cut. The meeting is scheduled for Wednesday in New Zealand, and the market is closely watching for any potential policy changes.
In light of these expectations, the NZDUSD pair experienced a decline today, causing the price to fall below a crucial swing area situated between 0.6167 and 0.61796. This area will now act as a strong resistance level for any potential upside movement. On the downside, key support levels to watch out for include the 100-day moving average at 0.6121, the 50% retracement level from the August low at 0.6113, and the 200-day moving average at 0.6099. Sellers will need to break through this support zone between 0.6099 and 0.61213 in order to gain more control over the currency pair.
With the RBNZ anticipated to slash interest rates by 50 basis points and the US Federal Reserve expected to lower rates by 25 basis points at its next meeting, the bias for the NZDUSD pair remains somewhat uncertain. Will the pair continue to hover near the key support level around 0.6100, or will it shift its bias downwards in light of these rate cuts? Traders are actively pondering these questions as they navigate the current market environment.
It is crucial for traders to closely monitor the developments surrounding the RBNZ meeting and any potential interest rate cuts, as these factors can significantly impact the direction of the NZDUSD pair. Additionally, keeping a close eye on key support and resistance levels, such as the ones mentioned above, can provide valuable insights into potential price movements in the near future.
As the market awaits the outcome of the RBNZ meeting and any accompanying announcements, it is essential for traders to remain vigilant and adaptable in order to navigate the potential volatility and uncertainty that may arise. By staying informed and responsive to market developments, traders can position themselves effectively to capitalize on any opportunities that may emerge in the NZDUSD pair.
