Ahead of the RBNZ rate decision NZD/USD is trading 0.27% higher

• NZD/USD is trading in the black extending on its 1.18% move higher on Monday.
• The RBNZ is not expected to move on rates but they might try and dampen the recent NZD rally.

NZD/USD daily chart

The NZD/USD pair is once again trading higher as the market continues to break higher from the lows seen in March. The central bank could follow the Fed’s tone and maybe call for more fiscal help from the Government. The RBNZ may also mention the fact that the country has done a great job at controlling the coronavirus but that unemployment levels remain very far away from target levels along with inflation.

Looking at the daily chart below the key point is the trendline the market rejected on 9th June. This could be a key area after the central bank rate decision later in the session. On the upside, 0.6580 is the level to beat for the bulls and if the price breaks that level then the bull trend could be back on. 

On the downside, the 0.64 level is the next support. Below that, the 200 and 55 moving averages lie in wait. Interestingly, the MACD histogram has crossed over to the downside but the signal lines are still above the mid-level. 

Additional levels