NZD/USD retakes 0.73 handle

Offered tone around US dollar strengthened in Asia despite Friday’s upbeat US inflation report. The NZD/USD pair thus surged to 0.73 levels.

Eyes RBNZ rate decision

NZD and Kiwi traders await RBNZ rate decision due this week. The central bank is likely to keep interest rate unchanged and await more inflation data. Wheeler has said there is one more rate cut in the pipeline hence the doors remain open for a cut in November especially if the inflation drops in the coming months.

Traders would also keep an eye on the Fed rate decision and BOJ decision due later tater this week.

NZD/USD Technical Levels

The spot was last seen trading around 0.7302. A break above 0.7334 (38.2% of 0.4891-0.8842) could yield 0.74 handle, above which monthly 100-MA level of 0.7450 could be put to test. On the lower side, breach of 0.7282 (5-DMA) would expose 0.7255 (daily low) 0.7217 (50-DMA).