Chart - Courtesy Trading View
NZD/USD was holding marginal gains ahead of the Reserve Bank of New Zealand interest rate decision on Wednesday.
The Kiwi pair brushes aside downbeat New Zealand Trade Balance numbers while taking clues from broad-based US Dollar retreat.
Data released earlier on Tuesday showed New Zealand Trade Balance slipped to -2,129M MoM figures for October versus $-1,353M market forecasts and $-1,696M prior.
Further, the Exports were up to $6.14B versus $5.94B prior while the Imports rose to $8.27B versus $7.63B prior.
That said, markets are currently pricing in a 70% chance of a 75 bps hike from the RBNZ at its policy meeting on Wednesday.
Less-hawkish commentary from Fed policymakers has started weighing on US Treasury yields, 10-year US yields have slipped below 3.82%.
Upside in the pair remains capped at 5-DMA. Price action hovers above 200H MA, break below will drag the pair lower.
