NZD/USD & RBNZ Interest Rate Decision: Consolidating below 0.7050 after the event?

Today at 21:00 GMT will be released the RBNZ rate statement, together with the official interest rate decision that could see a cut from 2.25% to 2.00%. Markets are expecting that rate cut and that’s why we’ve have been seeing very volatile moves on the Kiwi, as the uncertainty remains there. Also, traders will be closely watching for the monetary policy statement, due to be published at the same time.

The technical picture for NZD/USD at H4 chart is bullish on a general overview, as the pair remains trading above the 200 SMA. However, last week was quite bearish for the Kiwi and later it found support around the 0.7108 level. Also, during the last week, NZD/USD found resistance around the 78.6% retracement level, where a pullback happened. As the markets are expecting a rate cut, a decline to the 0.7050 level can happen, while a “hawkish” statement by RBNZ could send the pair to test the highs from last week.