NZD/USD - NZD/USD Is Moving Towards The 0.7260 - 08/10/2016 (GMT)

The main focus today will be on the New Zealand dollar and the upcoming monetary policy announcement at 21:00 GMT. The RBNZ is widely expected to cut its benchmark interest rate 25 basis points to 2.0%. It should be noted that the strong currency is not making difficult for the economy to reach RBNZ inflation target. The housing market is one of the main factors that will prevent a more aggressive move on the pair.

The major trend of the NZD/USD pair is an uptrend since last August and the currency rose more than 1% the last two days, after the bounced off the 0.7080 support level which overlaps with the 100-weekly SMA. Currently, the kiwi is trading near the psychological level 0.7200 and moving towards to the next resistance level at 0.7260. A break above the latter level will expose the price to next barrier at 0.7320 or moreover, at 0.7370 obstacle. Technical indicators are endorsing the bullish scenario as the MACD and the RSI indicators are following a positive path.