NZD/USD approaching key structure ahead of next week's RBNZ

30 ene 2017

NZD/USD has remained bullish after the bullish CPI data that I successfully predicted. Prices moved lower after testing this descending trendline to pull back to key support, and is now continuing its ABCD move higher to possibly retest this structure. There is some uncertainty surrounding the US dollar amid Trump's policies after he signed travel ban for several Muslim countries over the weekend, which weakened the US dollar and resulted in NDZ/USD gaping higher on the open of markets. We can expect choppy price action over the coming days as we have a number of key US data including the all-important NFP on Friday. Next week we have the RBNZ interest rate decision, and although expectations are for RBNZ to hold rates after cutting rates to a record low 1.75%, we can expect encouraging comments from the central bank due to the recent positive Kiwi data, which would see further bullish pressure for the currency.