NZD/USD: bulls holding the 0.73 handle ahead of RBNZ

Currently, NZD/USD is trading at 0.7318, down -0.15% on the day, having posted a daily high at 0.7340 and low at 0.7309.

NZD/USD bulls attempted a bid in a minor correction of the 0.7557 sell-off and while capped relatively early, 0.73 the figure remained in tact ahead of the RBNZ meeting today. Not only is NZD/USD under pressure with a resurgence in the dollar and a geopolitical risk-off tone, the consensus for the RBNZ is dovish to neutral on OCR guidance.  However, developments between President Trump and Kim Jong-Un are dominating. 

US and North Korean aggression is the main driver today - BBH

Analysts at Nomura expect no policy changes from the Reserve Bank of New Zealand (RBNZ) but explained that they do expect it to reaffirm its cautious stance. "We see a possibility the Bank may express some more explicit dovish leanings because of the subdued inflation backdrop and elevated NZD," the analysts added. 

NZD/USD levels

The next supports come as 0.7300, 0.7280, (11th July high), 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970. On the flip side, 0.7370 (recent high) remains the first resistance. 0.7420/25 ahead of the key 0.7440 and 0.7480 thereafter comes as the next near-term resistance areas. 0.7520/25 double top highs are ahead of the 21st July high at 0.7557. In a continuation, 0.7744 were the April 2015 highs ahead of the opening highs for that year at 0.7889.