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    NZD/USD edges higher ahead of RBNZ decision

    © Dukascopy Bank SA
    "In view of the lack of price pressure in the economy and since the NZD is still overvalued on several measures, we expect a dovish policy statement from the RBNZ this evening and look for a softer tone in NZD/USD to re-emerge in the coming weeks. We forecast a move towards 0.61 on a 12 mth view." 
    - Rabobank (based on FXStreet) 


    Pair's Outlook 
    As a commodity currency, the New Zealand Dollar also suffered from Chinese Trade Balance figures on Tuesday, slumping more than 50 pips against the Buck. Demand at the immediate support cluster was sufficient to limit the volatility and to cause a possible rebound today. An increase in oil prices is stimulating Kiwi-buying, which could lead the NZD/USD currency pair closer towards the 0.68 major level. The Bollinger band is the nearest significant resistance at 0.6807, but RBNZ's statement might push the NZ Dollar even higher. Technical indicators are giving bullish signals, suggesting the bullish scenario is to prevail. 

    Traders' Sentiment 
    SWFX market sentiment is once again equally divided between bulls and bears, whereas the portion of buy orders declined from 60 to 48%.
    © Dukascopy Bank SA

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