RBNZ decision ahead
The RBNZ is expected to cut rates by 25 basis points today. It is supported by all the economists on Bloomberg, so it is not a question of a surprise. However, what they say will be of interest (do they keep a dovish bias), or if they choose not to cut, that would be the shock (low inflation remains the problem).
Technically, the pair rallied into resistance yesterday but has reversed lower in trading today (see blue circle 3 in the chart above). Looking at the daily chart, the pair is between resistance above in the 0.7363-79 area (yellow area), and on the downside, support against the 100 day MA at 0.72077. A move below that MA would be more bearish for the pair. Other downside targets include the trend line connecting lows going back to January and then the 200 day MA at 0.7008. We are likely not heading there today, but it might be a focus for traders down the road.
Wheelers presser will begin at 4 PM ET
