Chart - Courtesy Trading View
NZD/USD was trading 0.29% lower on the day at 0.6232 at around 11:10 GMT, bias remains bearish.
The New Zealand dollar remains subdued investors brace for the Reserve Bank of New Zealand’s (RBNZ) decision, which is scheduled for Wednesday.
The central bank is expected to downshift to a 50 basis point rate hike after delivering a record 75 basis point increase in November.
The latest central banks survey showed inflation expectations for two years ahead had eased to 3.3% from 3.6%, closer to the target band of 1%-3%.
Moreover, the pair remains under pressure from strong US economic data and hawkish signals from Federal Reserve officials who hinted at a bigger half-percentage point rate hike in March.
Technical bias for the pair is bearish. 5-DMA caps any recovery attempts in the pair. Price action is within cloud.
GMMA indicator shows major and minor trend are bearish. MACD and ADX support downside in the pair.
Support levels - 0.6184 (200-DMA), 0.6135 (Cloud base)
Resistance levels - 0.6254 (5-DMA), 0.6292 (200H MA)
Summary: NZD/USD trades with a bearish bias. Watch for break below 200-DMA for further weakness.
