The New Zealand dollar, also called the Kiwi, was trading somewhat higher during the US session and was seen hovering around 0.6750 in the afternoon.
Investors are getting ready for today’s Reserve Bank of New Zealand monetary policy decision, where the official cash rate should stay unchanged at 1.75%. However, the following commentary will be more closely watched, along with the press conference. These usually cause higher volatility on the NZD pairs.
Earlier in the day, the RBNZ inflation expectations stayed at 2.0% and kiwi jumped slightly afterward.
There are no major data on the agenda from the US and therefore volatility could be lower till the RBNZ meeting.
The NZDUSD pair is now testing the broken bullish trend line of the previous triangle pattern, which is around 0.6780. If the kiwi jumps beyond this level, it could be back in the bullish trend, targeting the 0.68 level. The support is now at the current cycle lows near 0.6680.
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