With the rate decision looming for the RBNZ on Wednesday, there’s an expectation that the Official Cash Rate in New Zealand will drop from 3.00% to 2.75%. The sell-off in the kiwi is reflecting that assumption and the pair has made a double bottom along 0.7345 and today’s 0.7339 session low.
The trendline breakdown has continued and the red GRaB candles have indicated a dominant bearish market sentiment and trend since February 11. The 200 period SMA (currently at 0.7387) is not acting as a support level but there’s no denying the (current) gravitational pull from this key indicator.
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