FxWirePro: NZD hovers at key resistance ahead of RBNZ

Consolidation continues,

• The New Zealand dollar is continuing its consolidation and hovering around key resistance as the Reserve Bank of New Zealand (RBNZ) is set to announce monetary policy decisions at 1:00 GMT tomorrow, which would follow a press conference at 2:00 GMT.
• The consolidation is continuing in the New Zealand dollar since November last year as the NZD/USD has been moving in a tight range of 300 pips (0.697-0.677).

RBNZ has already announced that it intends to keep the rates at the current level of 175 bps heading into 2020, so the rate decision could be a non-event.

So, it is very likely that the consolidation would continue and New Zealand dollar would once again find resistance around 0.696 area. Should the resistance gets cleared on RBNZ momentum, the exchange rate (NZD/USD) would face resistance around 0.712 area.

Our calculations suggest that the bulls remain in charge, so, a breakout can’t be ruled out.