Fxstreet.com (Barcelona) - The NZD/USD has been trading between the 0.5070 and 0.5040 along the American session and ahead of the RBNZ Interest Rate Decision. Currently, the pair is trading around the 0.5030/50 levels.
The pair has rallied today ahead the rate decision from the 0.4974, as uptrend line support, breaking the 0.5040 resistance level and touching the 0.5070.
According to Valeria Bednarik, FXstreet.com Collaborator, the NZD is also being favored by the rebound in risk appetite: From a technical perspective, the pair has stated the day just above a daily descendant trend and continues above it. The upside is contained by the 20 SMA that has lost it bearish tone and turned to flat. Above 0.5100, intraday resistances will be at 0.5142 and 0.5200 zone. However, New Zealand is under its fifth consecutive quarter in recession, making it the most prolonged contraction since quarterly records began in 1987. So the Reserve Bank of New Zealand will cut the official cash rate by 50 basis points to 3 percent, in an attempt to steer the economy out of its worst recession in 22 years.
Valeria provide us with her levels: Under 0.5045, consider supports for the next hours at 0.5008, 0.4956 and 0.4900, 7 years low.