- The NZD/USD is flashing red, now trading at the lowest level since November 21.
- The RBNZ is expected to keep interest rates unchanged.
The NZD/USD fell to 0.6815 on Wednesday – the lowest level since November 21.
The currency pair had picked up a bid in early Asia after New Zealand reported a surplus of $294 million but ran into offers at 0.6859, likely due to trade fears and the resulting selling in NZD/JPY, slide in Yuan and the drop in AUD/USD.
The currency pair is on the defensive and could extend losses further if the slide in China’s Yuan triggers risk aversion.
Focus on RBNZ
Thursday’s RBNZ official cash rate decision will not surprise, with a unanimous poll suggesting no change, according to Reuters. However, the policy statement may cause volatility.
NZD/USD Technical Levels
Support: 0.68 (psychological level), 0.6780 (November 17 low), 0.6675 (May 2016 low).
Resistance: 0.6826 (June 21 low), 0.6867 (5-day moving average), 0.6895 (10-day moving average).
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