Forex: NZD/USD surrenders gains to trade at 0.8257/59

The NZD/USD seemed to be unaffected by the impending decision of the RBNZ – scheduled for later today – rising higher to a session of 0.8278 during European trading. However, in recent minutes the pair has fallen nearly 20 pips to pare its gains and settle near opening levels at 0.8257/59.

“The NZD/USD is trying to confirm stability above its linear regression indicators, weakening negativity – these classical mixed signals force us to prefer to remain neutral today especially given that trading between 0.8310 and 0.8200 levels carries high risks when there is no other intraday signals supporting the trend.” writes the ICN.com Technical Analyst Team.

Later tonight at 20:00 GMT, the RBNZ will reveal its interest rate decision and monetary policy statement. Ahead of the decision, the mood is that there will be no change in rates or implementation of cuts. However, “if the RBNZ does start changing its rhetoric again and focus solely on the need for monetary adjustment irrespective of the NZD, we doubt current shorts will be able to hold for long.” adds Research Analyst Gareth Berry at UBS.

ICN.com analysts point to resistances at 0.8275, onto 0.8310, and finally 0.8355. On the decline, supportive measures will be implemented at 0.8240, ahead of 0.8225, and finally 0.8355.