➡️ The currency pair started the week lower as the US dollar strengthened on the back of higher US interest rates and shaky risk appetite. This week will focus on the Reserve Bank of New Zealand (RBNZ) and its rate decision on Wednesday. Economists at ANZ Bank expect a 50bp increase. and aggressive tone, which is likely to support the NZD.
Markets expect annual inflation in the US to be 8.3% against the previous 7.9%. This will already support the US dollar more against the New Zealand dollar as a higher US CPI could support a 50 basis point Fed rate hike in May. Fed officials also favor an aggressive hawkish stance on curbing inflation.
Going forward, an important event will be the decision of the RBNZ on the official monetary rate (OCR), which is due to take place on Wednesday. It is worth noting that the RBNZ raised the OCR rate by 25 basis points in the last two policy meetings. The Bank is expected to increase it by another 25 basis points to cope with rising inflation.
Technical level 0.68325 supports the price well. From it, one can try buy. There is a low probability that the instrument will try to make a false breakout of this level and then go up. Now the growth target is the level of 0.68765, we can consider the targets a little higher. But medium-term targets should not be set too high, as the US dollar is likely to keep the pressure.
➖➖➖➖➖➖➖
👍Thanks for your comments and likes👍
👇🔥LINKS TO PREVIOUS IDEAS AND FORECASTS🔥👇
Markets expect annual inflation in the US to be 8.3% against the previous 7.9%. This will already support the US dollar more against the New Zealand dollar as a higher US CPI could support a 50 basis point Fed rate hike in May. Fed officials also favor an aggressive hawkish stance on curbing inflation.
Going forward, an important event will be the decision of the RBNZ on the official monetary rate (OCR), which is due to take place on Wednesday. It is worth noting that the RBNZ raised the OCR rate by 25 basis points in the last two policy meetings. The Bank is expected to increase it by another 25 basis points to cope with rising inflation.
Technical level 0.68325 supports the price well. From it, one can try buy. There is a low probability that the instrument will try to make a false breakout of this level and then go up. Now the growth target is the level of 0.68765, we can consider the targets a little higher. But medium-term targets should not be set too high, as the US dollar is likely to keep the pressure.
➖➖➖➖➖➖➖
👍Thanks for your comments and likes👍
👇🔥LINKS TO PREVIOUS IDEAS AND FORECASTS🔥👇
