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NZD/USD PRICE ANALYSIS: HOLDS STEADY ABOVE THE 200-DMA AHEAD OF RB NZ'S MEETING

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  • NZD/USD could extend its rally toward 0.6200 if RBNZ’s Governor Orr strikes a hawkish message.
  • A dovish tilt by the RBNZ could drive the pair toward the 200-DMA and below the latter.

The New Zealand Dollar (NZD) is flat against the US Dollar (USD), early during Wednesday’s Asian session, ahead of the Reserve Bank of New Zealand (RBNZ) monetary policy decision. At the time of writing, the pair exchanges hands at around 0.6134, sitting above the 200-day moving average (DMA), suggesting the pair remains bullish.

Given the backdrop, a hawkish stance by the RBNZ could likely underpin the pair to test the next resistance area at 0.6225, the July 31 swing high, followed by the July 27 high at 0.6273.

Conversely, and the most likely scenario, RBNZ Governor Adrian Orr and Co. are expected to hold rates unchanged for the fifth consecutive meeting, which would likely weigh on the NZD/USD pair, which would dive toward the 0.6100 figure, ahead of the 200-DMA at 0.6089. If the exchange rates pierces that support level, the losses could extend to 0.6050, and beyond

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